Those involved in circumstances in which children are raised by their grandparents often encounter serious problems that require assistance from counselors. Research suggests that grandparents and parents in these families typically experience heightened stress and psychosocial distress. Additionally, the children often encounter behavioral, emotional, and academic difficulties. These difficulties usually occur partly as a result of the factors that lead to grandparents having to assume responsibility for the children. This paper provides a report of the phenomenon, particularly as it relates to the various members’ psychosocial well-being. In addition, family and group counseling are advanced as valuable relational psychotherapeutic models to enhance the well-being of the children, grandparents and parents involved.