The effectiveness of psychiatric day hospital care in elderly patients remains disputed. Based on a therapeutic community approach, psychotherapeutic day hospital treatment was evaluated in 122 elderly depressed patients and 76 demented patients suffering from behavioural and psychological symptoms. Neuropsychiatric symptoms, quality of life and therapeutic community progress were assessed at day hospital admission and discharge. In absence of any change in pharmacological treatment, results show a significant reduction of depressive and neuropsychiatric symptoms as well as improved adhesion to therapeutic community treatment, even in the demented patients. Results further reveal improved mental quality of life and subjective perception of clinical progress in depressed patients.