Abstract: An apparatus for unstacking and stacking containers. The apparatus includes a frame defining a compartment to receive a stack of containers, and a guide mechanism mounted within the frame to guide the stack in vertical movement. Located beneath the compartment is a conveyor, which in the unstacking mode, will deliver a stack of containers to the compartment and discharge individual containers. A vertically movable lift mechanism is mounted in the frame and includes a plurality of pivotable lift members disposed to engage a rim on the second lowermost container, to elevate the stack, and a plurality of holding members mounted on the frame and disposed to engage the upper surface of the rim on the lowermost container to hold the lowermost container against elevation. After elevation of the stack, the separated lowermost container is in a ready position to be conveyed away on the conveyor, depending on a need in the conveying system.