Purpose of review The purpose of this review is to summarize findings of the literature on homelessness and mental illness published in 2002. Recent findings Researchers focused on different topics concerning homelessness including physical and mental illness (e.g. schizophrenia, substance abuse and psychiatric comorbidity), risk factors, treatment and services. Although there are several methodological problems in homelessness research, many studies still use convenience samples, which may not be representative of the population of homeless individuals in a certain area. Summary It is encouraging that many researchers are interested in the special needs of homeless people, who are very impaired in many areas. It is important to take into account the complex factors that prevent them from being engaged in treatment. Methodologically sound investigations are needed to assess homeless people's needs and existing treatment facilities need improvements and probably reorganization in order to successfully meet these needs.