[en] This document is a Progress Report for the Physical and Environmental Sciences, Physics Division, for the period 1995 January 1 to December 31, at the Chalk River nuclear Labs. The condensed matter science group continued to operate a multi-faceted program involving collaborative basic and applied research with external scientists in the fields of materials science, physics, chemistry and biology. The Applied Neutron Diffraction for Industry (And) program gained strength with ever wider applications for the nuclear, aerospace, and manufacturing programs. Steps continued towards making neutron scattering facilities at NRU reactor more user friendly. The neutrino physics group, as part of the Sudbury Neutrino Observatory (SNO) Institute, collaborating with scientists from Canada, USA and UK. The accelerator physics group spent considerable effort working with materials and fuels scientists to show the value of accelerators as an out-reactor source of radiation. Specific research activities have included the demonstration of laser plasma deposition of diamond coating, which has potential application for high-wear components in reactors, and the study for a Free Electron Laser upgrade for the IMPELA accelerator. As a result of funding reduction all programs of the Division were dissolved as of 1997 March 31