Peer counseling in high schools provides a developmental growth opportunity for adolescents as well as a valuable outreach service for the Guidance Office. Through intensive small group experience and training, selected students gain insight into their own ideas, needs, and values. They also learn more effective interpersonal and decision making skills. As psychological education, an effective peer counseling program provides a variety of conditions under which adolescents may successfully complete the transition to responsible and satisfying adulthood. Adolescents receive guidance in defining themselves, develop consciousness awareness of conflicting demands, receive training and practice in responsible behavior, set and obtain realistic and desirable goals, assume responsibility for their own behavior and live constructively with the consequences, and develop security about their ability to handle new problems. This paper presents a detailed description of one, two-phased peer counseling program: skills training and application of skills. The entire program is then viewed developmentally as it considers how peer counseling furthers the psychological and maturational growth needs of high school students. (Author)