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Individuation is the process by which an individual becomes distinct. Individuation distinguishes you from everybody else in contrast deindividuation is mostly unconscious and more likely to lead to mischief as it is a sort of self-delusion. Deindividuation theory was developed to explain the violence and irrationality of the crowd. According to deindividuation theory, the anonymity and excitement of the crowd make individuals lose a sense of individual identity. But, despite a large amount of research, there is little support for deindividuation theory. As person moves into a group, results in a loss of individual identity and gaining the social identity of the group. When two groups argue (and crowd problems are often between groups), it is like two people arguing. Immersion in a group to the point that one loses a sense of self-awareness and feels lessened responsibility for one’s actions. This article discusses the theoretical background of deindividuation and its effects on individual, group and society and also its application in daily life.