Objective. The aim of the study was to assess the effectiveness of cognitive-behavior group therapy in a sample of patients with co-morbid depression and psychotic disorders. Method. Participants in this study were referred from either the psychiatric in- or outpatient clinic at the psychiatric university hospital in Trondheim. Self-report assessments of depressive symptoms, hopelessness, self-esteem, maladaptive schemas and personality traits/schemas, and an interview measuring depression, were administered at the start of therapy, after termination of therapy (eight weeks) and at six months follow-up. Psychosocial functioning was also assessed at pre-treatment and at six months follow-up. Seventeen subjects completed eight weeks of therapy. Results. The results showed that an eight week program of CBGT had a significant effect on depression in schizophrenic patients both at post-treatment and at six months follow-up, with no incidents of relapse. The psychosocial functioning measured by GAF also showed a significant increase from pre-treatment to six months follow-up for the participants. Conclusion. The present study suggests that cognitive-behavioral group therapy might be useful in treating co-morbid states of depression in patients with schizophrenic disorders. Copyright (c) 2005 John Wiley & Sons, Ltd.