This review focuses on empirical studies with pre- and post-test measures of functioning that have attempted to assess the benefits of psychotherapy with schizophrenics. The first part of the review concentrates on various subgroups of schizophrenia, which appear to be influenced by subject variables and manifest clinical symptomatology. The second part of the review deals with instrumentation and methodology issues in outcome research. Various demographic and premorbid characteristics of schizophrenic patients that appear to influence outcome, as well as the means of measuring outcome, are discussed. The impact of the degree of control exercised over treatment variables is also examined. The third part of the review examines the research most directly germane to therapy outcomes. In general, three major modalities are reviewed: individual analytic/dynamic therapy, supportive and other individual therapies, and group approaches to therapy. The review also includes a number of variables that impact therapeutic effectiveness within these modalities. The final part of the review attempts to summarize the various outcome studies. The review notes that the course of schizophrenia appears to be multidetermined and multicausal; that psychotherapy does provide an incremental and durable benefit in the treatment of schizophrenia; and that individual supportive therapy seems to offer the most cost-effective psychotherapy treatment. The effects of therapy process and therapist variables are also discussed. (NB)