Abstract Compared 56 5-20 yr olds from 43 families, in which either 1 or 2 parents were psychotic and hospitalized in mental institutions and who were raised in institutions, foster homes, or both (Group C), with 250 children (mean age, 141/2 yrs) who grew up with their psychotic parents (Group A) and 274 children (mean age, 151/2 yrs) raised by "average" nonpsychotic parents. Data collected included biographical characteristics; ratings of the children's behavior outside the school by foster parents and institutional staff; teacher ratings of the child's behavior and achievements; interviews with the child concerning his feelings about parents, siblings, peers, and self; and WISC, Bender Gestalt Test, and human figure drawing test results. Overall results suggest that the Group C children developed more stable personalities and could probably benefit more from the free schooling provided by society. Adequate, stable surroundings appear to have a mitigating influence on a handicapping genetic heritage. (PsycINFO Database Record (c) 2016 APA, all rights reserved)