Objective: A prospective study based on five years' experience of the first psychiatric day hospital in Saudi ArabiMethod: All patients engaged in treatment were assessed at six weeks intervals using a modified version of the Morningside Rehabilitation Status Scale (MRSS) translated into Arabic. Results: Over the five year period, 370 males and 195 female patients were referred to the day hospital, with 62.7% being engaged in treatment. A large proportion (86.1%) of patients had treatment duration of up to two years, utilising various and multidisciplinary treatment techniques. Diagnostic categories showed a variety of psychotic and neurotic disorders. The MRSS showed that 65% of engaged patients improved either moderately or markedly. Conclusion: This study provides evidence for cultural acceptance, feasibility and efficacy of community psychiatric care services, especially day hospitals in the Saudi Arabian community. It also suggests that day hospitals play a significant role in treatment of neurotic as well as psychotic patients. It is also evident that this study encourages health planners to establish day care hospitals as an important complementary component of psychiatric services.