A qualitative methodology was used to explore the narratives of participants about recovery from the initial experiences of psychosis, and a diagnosis of schizophrenia. A process of psychosocial adjustment to the experiences of psychosis, and a diagnosis of schizophrenia, appeared central to recovery. The psychosocial impact of a diagnosis of schizophrenia on this adjustment process was also explored. Factors that impeded, or assisted, this process of adjustment were identified. Semi structured interviews were conducted with 12 participants, six men and six women, who had received a diagnosis of schizophrenia within the last ten years. These interviews were audiotaped, and transcribed, and Grounded Theory was used to analyse the data. The results formed a temporal stage model of the process of adjustment to the experiences of psychosis and a diagnosis of schizophrenia. Implications for clinical practice and further research are discussed.