This study examines the process of construct-element interaction in the repertory grid. It involves a more detailed analysis of grid functioning than is usual. It is proposed that within one subsystem, and within its range of convenience, a construct may not he used in a uniform way of all the elements in a grid. Instead, its application may change with each element considered as a separate context. This may cause difficulty in determining the organisation of constructs in the grid. The study aims to (i) examine the notion of construet-element interaction in relation to aspects of personal construct theory. (ii) Investigate the process of construct-element interaction in the grid. (iii) See if interaction produces functionally dissimilar implications. (iv) Determine when such implications are most likely to he produced. This is an exploratory study. Results and arguments presented indicate that (i) Interaction is not an isolated methodological phenomenon hut is closely related to aspects of personal construct theory. (ii) Interaction produces at least verbally different implications and often functionally dissimilar ones. (iii) Various factors, especially the hierarchical position of a construct contribute to the production of functionally different implications.