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This article focuses on the impact of the Internet on social and psychological well-being of an individual. The HomeNet project, studied a sample of 169 people in Pittsburgh, Pennsylvania. As people in this sample used the Internet more, they reported keeping up with fewer friends, spending less time talking with their families, experiencing more daily life stressors and feeling more lonely and depressed. These results occurred even though interpersonal communication was their most important reason for using the Internet. Some critics have dismissed conclusions made by HomeNet project because they are not drawn from a national sample of the U.S. population. Many important studies in medicine and the social sciences have examined small community samples and in doing so, have traded off the depth achieved in examining a small sample over time with the generality achieved in large, national surveys. Moderation in the use of the Internet, as in most activities, is sensible. But perhaps more importantly, people should pay attention to how they use the Internet and the cost of the time devoted to the Internet.