This study hypothesized that social competence and clinical factors previously associated with psychiatric outcome among inpatients would be effective predictors of outcome among outpatients (N = 77) as well. Intake and 2‐year outcome status were assessed multidimensionally with absolute‐level and residualized indices of functioning, overall clinical status, and symptomatology. Menninger health‐sickness proved to be the best single predictor, although Phillips premorbid functioning, Strauss‐Carpenter prognosis, social class, and diagnostic severity also predicted well to outcome. Patterns of associated predictor/outcome variable clusters were described. Results suggest that a general social competence factor predicts to psychiatric outcome across the entire range of disorders, but that life events stress does not.