We present an extension of the methods of classical Lie group analysis of d
ifferential equations to equations involving generalized functions ( in par
ticular: distributions). A suitable framework for such a generalization is
provided by Colombeau's theory of algebras of generalized functions. We sho
w that under some mild conditions on the differential equations, symmetries
of classical solutions remain symmetries for generalized solutions. Moreov
er, we introduce a generalization of the infinitesimal methods of group ana
lysis that allows us to compute symmetries of linear and nonlinear differen
tial equations containing generalized function terms. Thereby, the group ge
nerators and group actions may be given by generalized functions themselves
.