Objective: We assessed the rate of recovery from schizophrenia in community-based psychosocial rehabilitation and whether psychosocial attributes predicted the achievement of recovery beyond demographic and clinical characteristics. Methods: We used data from 246 individuals with schizophrenia spectrum disorder collected at baseline and at 6 and 12 months after admission to psychosocial rehabilitation. Results: The proportion of participants who showed recovery during either 6-month period and the full 1-year period was 19.86% and 7.53%, respectively. Although predictors of recovery for the 1-year period could not be reliably estimated due to its low rate, higher levels of intrinsic motivation and more positive family relationships at baseline predicted recovery for either 6-month period after controlling for initial functioning capacity. Conclusions: One in five individuals with schizophrenia who engage in intensive community-based psychosocial rehabilitation can achieve periods of recovery during treatment. Psychosocial attributes at the start of treatment are important contributors to subsequent recovery.