Sixty-nine patients with pancreatic pseudocysts were reviewed. Chronic alcohol abuse was associated with pancreatitis in 78 percent of the patients. Presenting signs and symptoms were nonspecific. Ultrasonographic and computerized axial tomographic scans were most commonly used to established the diagnosis. Twenty patients were managed conservatively and resolution occurred in 11 of these patients. Forty-nine patients underwent operation. Internal drainage was performed on 31 occasions in 29 patients, and external drainage was performed in 11. In addition, pancreatic resection was carried out in 8 patients, and needle aspiration in 2 patients. Infected pseudocysts were present in 11 patients. Complications occurred in 18 patients in the operated group and 2 patients died (4 percent). There was recurrence of pseudocysts in 10 patients. Our results suggest that pseudocysts remain a common complication of pancreatitis, and infected pseudocysts are the major cause of postoperative morbidity. Computerized axial tomography and ultrasonography are the mainstays of diagnosis. Surgical therapy is safe, but continues to be associated with significant rates of morbidity and recurrence. When pseudocysts recur, they are generally anatomically distant from the original lesion and probably represent new disruptions of the pancreatic duct.