Following the collapse of the front through the German invasion of Greece in April 1941 and the onset of a triple occupation by Germany, Italy and Bulgaria, Psarros first attempted to organise a resistance group in Amfissa with the help of Lt. Andreas Mitalas, but without success. Next he went to Macedonia. There, in July 1941, he co-founded the organization "Freedom" (, "Eleftheria") with communists members, which deployed guerilla forces in the area of Nigrita, Lachana, and Kalokastro of Central Macedonia, to fight the Bulgarians, who had followed the Germans into Greece, occupied much of northern Greece and had set their sights on permanent annexation. Unfortunately, Psarros was betrayed to the Axis Forces and was chased by them.