During the last decade we have seen the development of gay-affirmative psychotherapy and an increase in the use of homogeneous psychotherapy groups for gay men. Today there is greater acceptance that homosexuality is a normal variant within human sexuality and that being gay both describes the focus of one's sexual and emotional expression and constitutes a central aspect of one's core identity. In their pursuit of full acceptance of their lesbian or gay identity, lesbians and gay men continue to experience pressures that are unique, however. Within a psychotherapy group, when the group leader is gay, the process by which the group members work on their transference reactions, as well as their internalized homophobia and shame, can evoke strong countertransference in the gay male group leader and his supervisor; this countertransference is at times distinctly different than that with a nongay group therapist. This article highlights many countertransference themes in such groups and proposes ways to identify and manage these themes.