At the initial presentation to a first-episode of psychosis program, family members were experiencing distress and difficulties. The purpose of the study was to assess the effectiveness of individualized family intervention integrated within a comprehensive treatment program for first episode psychosis. Participants were the family members of individuals who had presented with a first episode of psychosis. Family members were assessed with the Psychological General Well-Being Scale and the Experience of Caregiving Inventory (ECI). Patient data included assessment of positive and negative symptoms, depression, quality of life, and substance use. Assessments were conducted over a three-year period. Over time families demonstrated improved psychological well-being and ECI scores. The most significant predictor of poor psychological well-being was the family's appraisal of the impact of the illness on themselves and not the severity of symptoms or impaired functioning. This family intervention embedded within a treatment program proved to be highly acceptable and effective.