The Lie algebra L(h) of point symmetries of a discrete analogue of the nonl
inear Schrodinger equation (NLS) is described. In the continuous limit, the
discrete equation is transformed into the NLS, while the structure of the
Lie algebra changes: a contraction occurs with the lattice spacing h as the
contraction parameter. A live-dimensional subspace of L(h), generated by b
oth point and generalized symmetries, transforms into the hire-dimensional
point symmetry algebra of the NLS.