The project investigated aspects of group dynamics and group behavior with mentally retarded adolescents, aged 18 to 25 years with a mental age ranging from 3 to 7 years, who worked in citriculture in Israel. The report began with an examination of the peer group principle, its relationship to childhood, adolescence, and adulthood, and its application to the mentally retarded. A short review of literature concerned with group work with the retarded precedes a detailed account of the group behavior techniques used with four groups of retarded boys. The establishment of the group as a team of workers in the citrus fields was outlined, and the importance of physical education for the retarded was developed as it applied to the Israeli program. In an attempt for the retardates to gain admission to the open labor market as farm employees, attitudes of prospective employers in the rural area were surveyed. A followup study focused on the group relationships of the retardates after they had completed the initial research project. The second part of the report concerned a group discussion of the four group instructors and the chief investigator, in which all aspects of the program were analyzed in a conversational manner. (CB)