Psychotic disorders are extremely challenging for individuals and their loved ones. The experience of psychosis, as is found in schizophrenia, may subvert the foundations of the individual’s relationship with the world. Irrespective of the theoretical frame of reference, psychotic episodes are characterized by intrinsic impairment of the individual ability to know, make sense of, and experience the world, thus limiting agency and threatening dignity. In addition, individuals with acute psychosis are generally cared for within institutions that entail some degree of separation from society (e.g. the psychiatric ward) and—in extreme cases—with coercive practices. Coercion is established by the law as a “necessary evil” to avoid risky outcomes and to achieve clinical improvements, i.e. recover a better contact with reality. However, this approach may engender situations that are detrimental for individual dignity, morale, and epistemic justice. During the emergence of acute severe mental illness and its treatment, individuals may in fact encounter stigmatization and marginalization, and experience stress, loss of agency and loss of dignity. After one or more hospital admissions, the experience of severe mental illness and the conditions related to treatment may engender demoralization, which is particularly detrimental in the long term and may increase the risk of suicide. This chapter aims to provide an overview of the available evidence on these topics and broad indications on strategies and therapeutic approaches that might improve the experience of psychiatric inpatient care.