Recently, improvement of quality in medical services has become a subject of discussion and an important issue in Korea. so, healthcare organizations have been struggling to find ways of reducing medical costs with better medical results on the part of patients. Case Management is a delivery system of patient care of focusing on the achievement of specific outcomes within designated time frames and with appropriate use of resources. And this Case Management is called Critical Paths which are displayed in graphic form. Purpose of this study was to survey literature review of critical paths for managing admitted psychiatric patients. Immediate goals of this study, in orders to accomplish the following areas will be studied : 1) identifing principles and development process of critical paths, 2) finding the utilizing effect of critical paths in clinics, 3) identifing significance of development of critical paths in psychiatric nursing area, 4) identifing example of critical paths for psychiatric patients, 5) identifing role of mental health nurse. Based on this study, it was found out that both of hospital based treatment and community based mental health program were proved to be important and necessary to connect both program for keeping the balance. Most of critical paths were developed and applied in hospitals at first and reported the common effects that were reducing length of stay and healthcare costs, and among other things, improving communication between patients and between healthcare team. Also, it shown that critical paths could be expanded in community area as well as in clinical area, and be used as educational program for patients, families, student apprentice and staffs. Therefore, mental health nurses have to develop critical paths in order to improve quality of psychiatric care for both inpatients and outpatients care so that it should be able to serve as both case manager and coordinator through alliance and integration of both clinical and community case management.