This study examined the effectiveness of a cognitive-behavioural therapy programme for 13 children treated for severe emotional or behaviour disorders in a hospital setting. Data were obtained from multiple informants at pre-treatment, post-treatment, and three months follow-up. Results indicated statistically significant improvement in the children's global psychological functioning and reduction of maladaptive internalizing behaviours with maintenance at follow-up. The children reported statistically significant reduction in clinical maladjustment at discharge only. A positive trend toward healthier adaptive functioning was noted. Prognosis was poorer for children with comorbid diagnoses of internalizing and externalizing disorders. Clinical implications and directions for future research were discussed.