Several surfactant molecules self-assemble in solution to form long, flexible wormlike micelles which get entangled with each other, leading to viscoelastic gel phases. We discuss our recent work on the rheology of such a gel formed in the dilute aqueous solutions of a surfactant CTAT. In the linear rheology regime, the storage modulusG′(&ohgr;)and loss modulusG″(&ohgr;)have been measured over a wide frequency range. In the nonlinear regime, the shear stress &sgr; shows a plateau as a function of the shear rate&ggr;˙above a certain cutoff shear rate&ggr;˙c.Under controlled shear rate conditions in the plateau regime, the shear stress and the first normal stress difference show oscillatory time-dependence. The analysis of the measured time series of shear stress and normal stress has been done using several methods incorporating state space reconstruction by embedding of time delay vectors. The analysis shows the existence of a finite correlation dimension and a positive Lyapunov exponent, unambiguously implying that the dynamics of the observed mechanical instability can be described by that of a dynamical system with a strange attractor of dimension varying from 2.4 to 2.9. ©2000 American Institute of Physics.