Treating psychotic disorders in their earliest stages has become a key focusfor research and clinical care. This paper reviews evidence of the capacityto identify those at increased risk for psychotic disorder and to intervenein the identified, high-risk individuals to ameliorate the course ofdisorder. Issues involved in preventive oriented clinical care areaddressed, such as risk/benefit considerations, ethical and safety issuesand the value of stage-specific interventions. Clinical predictorsidentified in recent research, promising intervention trials and proposedclinical practice guidelines are described. An approach based on activeengagement, support and monitoring, yet with a conservative approach tomedication use is advocated at present. Potential neurobiological processeshave been studied and reinforce the sense that this is a critical phase foractive treatment, and may prove helpful in understanding the process oftransition across stages of illness. More research is required inprediction, neurobiology and treatment