Treatment outcomes for psychiatric inpatients with aprimary diagnosis of a depressive or anxiety disorder who completeda cognitive behavior therapy (CBT) program while inpatientsor when discharged were examined. Of 340 inpatients, 197 had beendischarged to day patient status before the end of the CBT program,and 143 remained as inpatients. Data were collected before and afterthe CBT program and at 3-month follow-up. There was a significantimprovement by posttreatment in self-esteem, locus of control,anxiety, depression, and stress, and these gains were maintained at3-month follow-up. In addition, anxious, but not depressed, patientswho completed CBT as day patients demonstrated greater improvementsfrom after the CBT program to follow-up than those treated asinpatients. Possible reasons for the beneficial effects of completingthe CBT as a day patient rather than an inpatient are discussed, andthreats to the validity of this naturalistic study are considered.