Psychosocial rehabilitation (PSR) is one of the leading approaches in care of persons with mental illness and is redefining treatment in mental health delivery systems. This approach was initiated by families and consumers who were frustrated with the inadequacies of most mental health systems to provide support and meaningful social and interpersonal experiences for those with severe and persistent mental illness. Now, an interdisciplinary body of knowledge is being developed. Nursing has an opportunity to participate in the development of PSR models. This article describes the principles and concepts of PSR and proposes that nursing begin integrating nursing care into PSR through the use of the Reed process model.