The epistemological underpinnings of grounded theory make it valuable in the study of nursing, which is premised on an interpersonal process between nurses and clients. Further, it is a useful style of research when there is little prior information about a topic. In this article (Part 1), Terence McCann and Eileen Clark outline the key features of this methodology. In the follow-up article (Part 2, McCann and Clark 2003a), a critique is provided of grounded theory and the two main approaches to this methodology. In the final article in the series (Part 3, McCann and Clark 2003b), the authors illustrate how grounded theory can be applied to nursing research with examples from McCann's Australian study (McCann and Baker 2001) of how community mental health nurses promote wellness with clients who are experiencing an early episode of psychotic illness.