This first section of this paper reviews the literature on the social world of the institutionalized elderly. Social factors contributing to institutionalization are discussed, including the personal and psychological background of residents. Social behavior and the institutional environment are reviewed, focusing on social interactions among residents, between residents and staff, and between residents and non-residents. The role of social factors in institutional outcomes is also discussed, and a model of social factors in institutional life is presented. The second section of the paper presents data from a longitudinal study of the initial year of institutional living of residents (N=253) who were studied from the pre-institutional stage, before entering diverse institutional environments. They were compared with 35 residents entering a senior citizen housing site. Residents' self-reports, and staff and interviewer observations of their interactions indicated that they not only survived the move and early adjustment period, but generally found life in a congregate facility to be no worse than they expected, or in many cases, better than expected. The primary motivating factors for institutional entry frequently were social in nature, and most residents were willing or eager to move and expected their stay to be permanent. Social interactions remained stable. The elderly received frequent visitors, reported generally pleasant interactions with other residents and staff, and participated in activities at the institution, although there was little increase in close and meaningful social ties. (JAC)