This study examined the differential ability of early in treatment measures of therapeutic alliance (Working Alliance Inventory), group cohesion (California Psychotherapy Alliance Scale for Group) and group climate (Group Climate Questionnaire) to predict outcome in a 16-session dynamic group psychotherapy for adults with major depression. Six successful therapy groups with 30 patients receiving psychodynamic group therapy were studied. Patient perceptions of the therapist alliance was not related to outcome, however, perceptions of levels of conflict and group members' ability to work actively and purposefully in treatment did predict outcome. Future research should further investigate how patients' perceptions of the whole group influence their clinical improvement.