The central concern of this paper is to examine the subculture of the aging theory and the relationship between aging group-consciousness and morale. Aging group-consciousness is postulated to be one of the major components of an aging subculture. A study of 81 older people was conducted in a rural, multi-story housing facility. Questionnaires were used to collect the data. A six-item index was developed to measure aging group-consciousness and morale was measured by the Kutner Morale Scale. Analysis of the data indicated that a significant number of residents viewed themselves as members of an emerging social group. Aging group-consciousness was found to be positively correlated with morale at the .02 level. It was concluded that the data supported the subculture of the aging theory. The most important implications of the findings are that programs which foster the development of an aging subculture could make a contribution to a higher level of morale for older residents of congregate housing and that the denial of chronological aging may result in a decrease in the level of morale, and not an increase in it. (Author)