A number of psychological models for depression and bipolar disorder have at least some empirical support, are in common use and spawned effective psychological treatments for mood disorder. The article will discuss cognitive behaviour therapy and life events and social support models for unipolar depressive episodes, and more briefly review psychodynamic and medication adherence models for depression, and the development of psychological models in bipolar disorder. These models fit well with the view of many patients that their mood disorder is at least in part psychologically and socially caused. They also promote active self-management of their condition rather than passive compliance with treatment. As a result, these psychological approaches tend to improve the outcomes from medication. Effective care plans can be based on a formulation of cases with mood disorders using these psychological models without employing a formal course of psychological treatment. However, people who do not improve with such a plan may require a formal course of psychological treatment based on these models from an experienced therapist. Since these models tend to utilize information from the past that often cannot be verified, they are open to reporting and recall bias. Also, severely ill or immature patients may not be able to utilize these techniques. However, in suitable patients the use of these psychological models in addition to optimal prescribing of medication and continuity of care probably represent the current gold standard of care for mood disorders.