We assessed the prevalence of psychiatric morbidity and level of social adjustment in 32 of 34 adults who received liver transplants between 1 August 1987 and 31 July 1988 and who survived more than 6 months postoperatively. The prevalence of psychiatric morbidity was comparable with that found in the general population. Subjective complaints of cognitive impairment were common (40.6%). Liver transplant recipients were not significantly more handicapped in overall social functioning, but did show significant impairment in several role areas when compared with a community sample. Psychiatric morbidity was associated with greater social impairment, whereas liver function and other medical problems were not. We suggest that identification and treatment of psychiatric illness following transplantation needs to be better established as part of the treatment program.