We extend the Collective Atomic Recoil Lasing (CARL) model including the effects of friction and diffusion forces acting on the atoms due to the presence of optical molasses fields. The results from this model are consistent with those from a recent experiment by Kruse et al. [Phys. Rev. Lett. 91, 183601 (2003)]. In particular, we obtain a threshold condition above which collective backscattering occurs. Using a nonlinear analysis we show that the backscattered field and the bunching evolve to a steady-state, in contrast to the non-stationary behaviour of the standard CARL model. For a proper choice of the parameters, this steady-state can be superfluorescent.The mechanical effect of light on atoms has now been the subject of intense theoretical and experimental research efforts for several decades. However, the fact that the collective atomic centre-of-mass motion of atoms can strongly influence the evolution of optical fields has only received attention relatively recently [1,2,3,4]. Recent experimental studies involving large numbers of cold atoms in high-quality cavities [5,6,7] represent an important advance in this field, allowing detailed experimental studies of collective atom-light interaction dynamics. During these interactions both the mechanical effect of the cavity modes on the atomic motion and the driving of the cavity modes by the dynamic spatial distribution of atoms in the cavity must be described self-consistently and cannot be considered independently.A recent experiment by Kruse et al. [5] represents the first unambiguous realization of the CARL model originally proposed by Bonifacio and coworkers [1], which describes collective backscattering of an optical pump field by a sample of cold atoms. Previous experiments on CARL have been performed in hot atomic vapours [8,9] where however the gain of the backward field can not be unambiguously attributed to atomic recoil.Here we extend the previous theoretical work on CARL, including the effects of friction and diffusion forces acting on the atoms due to the presence of optical molasses fields. We describe the system using a set of coupled Maxwell-Fokker-Planck equations. A linear stability analysis reveals that there is a threshold condition for the pump power above which collective backscattering occurs. Preliminary experimental results confirm this prediction [10]. We further show that the backscattered field and atomic density modulation amplitude or 'bunching' evolve to a steady-state, in contrast to the non-stationary behaviour observed using the standard CARL model. Our model describes the main features of the experimental results of [5].In addition to the so-called 'good-cavity' regime in which the experiment of [5] operates, we also examine the behaviour of the system in the 'bad-cavity' regime.We show that in this regime the atoms emit in a superfluorescent way [11], with scattered intensity ∝ N 2 , where N is the number of atoms. This is a unique example of a steady-state superfluorescence, i.e. superradiance from an incoherently pre...