Community-based alternatives to conviction and imprisonment for adult offenders with severe mental illness are receiving increasing attention from researchers and policy makers. After discussing the justifications that have been offered in support of community-based alternatives, this article reviews the current empirical evidence relevant to such alternatives. The authors use the sequential intercept model as a guide and summarize the existing research at several points along the criminal justice continuum. They conclude by highlighting the gaps in existing research and discussing the need for further research in several key areas.