Epilepsy was surveyed in the largest psychiatric hospital in the Santa Catarina State, southern Brazil. This establishment was designed for one thousand long-term beds but at the time of the survey there were 1126 inpatients. Diagnosis ranged from anxiety neurosis to schizophrenia although patients with epilepsy, with or without psychiatric symptoms were also admitted. The following aspects were analyzed: prevalence of epilepsy, seizure types, antiepileptic drug treatment and psychiatric diagnosis. 171 patients with epilepsy were identified (prevalence 152/1000), generalized tonic clonic attacks were the commonest seizure type and polytherapy was the standard treatment. In at least 85 of the epileptic patients there was no reason for prolonged institutionalization in a psychiatric environment. Moreover, most of the sample were prescribed large amounts of sedative drugs. A multi-disciplinary approach and outpatients services are urgently required to improve the prognosis and well-being of patients with epilepsy who are referred to psychiatric care.