Psychotic symptoms appear frequently in schizophrenia and other related disorders, and until relatively recently were not generally considered to be amenable to psychological interventions. Recent studies have changed these conceptualizations. Theoretical models, based on a stress vulnerability perspective, show how misinterpretations of anomalous experiences are factors in both the development and maintenance of psychosis. This review describes CBT treatment for persons with psychosis which focuses on education about symptoms and the cognitive model as well as a collaborative exploration of thoughts and schemas surrounding delusions and hallucinations. Treatment outcome studies show that CBT is an effective and acceptable treatment for psychosis.