The purpose of this study was to identify the effects of Self Understanding and Family System Functionung Group Theraphy on the change of self-esteem of nursing students. The study is based on 100 Group Theraphy sessions conducted for the one year and six months. The paticipants were 72 junior nursing students who were on the clinical practice of psychiatric ward. Each group was composed of 6-8 nursing students and it took ten times(90 minutes at one time) for two weeks. The program was consisted of self understanding, family system functioning, student`s presentation, and modeling. Data were collected from March, 1994 to July 1995 with 73 nursing students who were on the clinical practice of psychiatric ward in Gyeongsang University Hospital (Chinju city). The 72 students were measured by using self-esteem scale before and after the group teraphy on the self-esteem of nursing students. The data were analyzed by an SPSS computerized program and included Paired t-test to examine the pre-post differences of the group theraphy. As the result, Hypothesis, "self-esteem of nursing students will be enhanced after self understanding and family system functioning group theraphy" was accepted (P＜.001). In conclusion, self understanding and family system functioning group theraphy is efficient for improving the level of self-esteem of nursing students.