A study examines qualitatively the extent to which college students indicate that cocurricular theater activities impact on psychodynamic development in J. Katz's five areas--separation anxiety, peer influence, adult role models, personality development, and occupational choice. Subjects, 15 male and 15 female students involved in the theater program of a midwestern university, were interviewed, and transcripts of the interviews were analyzed. Results indicated that theater does have an effect upon students involved in theater at the collegiate level: (1) with "separation from home," theater tended to provide a surrogate family and a support group; (2) in "peer influence," theater participation provided a large group of friends for those involved; (3) in "adult role models," theater participation instilled a stronger sense of direction and a greater sense of maturity; (4) within "personality development," students realized improvements in their self-worth, self-esteem, and confidence level; and (5) within the area of "occupational goals and values," theater trained students in valuable skills which they could use in their chosen careers. Further research might examine any one of Katz' development areas singularly, compare different schools where theater programs are well established, examine family relations, and examine students over a period of time. (Contains 15 references, a table of data, and a figure illustrating Katz' five areas of psychodynamic development.) (RS)