The combination of new medications and effective psychosocial rehabilitation interventions has the potential to improve outcomes for individuals with schizophrenia significantly. Patients who have persistent positive symptoms can benefit from cognitive behavior therapy. Impairments in social competence can be addressed with social skills training. Supported employment programs may increase the ability of patients who have schizophrenia to obtain competitive employment. Family psychoeducational approaches, treatments for comorbid substance abuse, and cognitive rehabilitation approaches that enhance or bypass impairments in cognitive functioning are discussed. This article describes current efforts to incorporate these evidence-based principles of rehabilitative medicine into the management of schizophrenia.