This paper aims at contextualizing the Brazilian Psychiatric Reform by reviewing theoretical and practical milestones in the country's policies. Theses, dissertations, papers published in a database (Scielo), books on the theme, and official documents (conference reports, laws, bills) published between 1990 and 2007 were studied. The results show the advances and challenges of the Psychiatric Reform and point to the immediate need of a program for qualifying personnel; the need to use primary care, mainly the Family Health Program; the need to finance primary care; the adoption of the principles of the psychiatric reform; the need to individualize treatment, psychosocial rehabilitation; integrated care; and therapeutic project constructed collectively through the use of interdisciplinary and trans-disciplinary approaches, as well as constant assessment of the current practices. It is also pointed out that Reform projects are not homogeneous, i.e., practices happen according to the professionals' theoretical conception. This means that there are general guidelines, but that they are subordinated to the specific settings where the practices are carried out.
