Of 27 patients treated in a small psychotherapeutic unit, 26 were diagnosed as schizophrenics, and 1 as suffering from schizoaffective disorder according to DSM-III. One patient committed suicide during the observation period, and follow-up data were obtained for 26. Fourteen patients left the treatment program prematurely, 3 early and 11 in the midphase of the treatment. Nine female patients had good outcome (HSRS score > 52), 3 of whom had left the program early while 6 completed it. Seventeen patients showed no marked improvement. Level of functioning before admission was a good predictor of outcome. Therapeutic alliance and continuity of treatment were important for favorable outcome.