Individuals facing recovery from serious mental illness confront social challenges stemming from discrimination and the structure of our economic safety net. Although research has contributed to significant advances for individuals with the most serious mental illness, questions about the social nature of their world remain largely unasked. How can persons with mental illness move from community isolation to community integration? Building on earlier research, this paper uses qualitative data to address developmental challenges as impediments to community integration for young people with serious mental illness. Sixty transcripts from unstructured, in-depth interviews with psychiatrically disabled persons moving toward social integration were content analyzed to demonstrate possibilities for developmental growth in the context of living-learning communities. Data are organized and presented in three conceptual categories drawn from developmental theory: (1) risk-taking; (2) reciprocal relationships; and (3) self-determination. Based on the results, we suggest that attention to the challenges of developmental growth should complement current evidence-based and best program practices for young adults with mental illness.