Objective: Social cognition is affected in bipolar disorder & schizophrenia. Aim of the study: To compare social cognitive performance in patients with schizophrenia & patients with bipolar disorder and to assess social cognitive performance in relation to severity of psychotic symptoms. Method:30 patients with bipolar disorder , 30 patients with schizophrenia & 30 controls were subjected to clinical & cognitive assessment. Results & Conclusion:Social cognition is affected in bipolar patients to a level comparable to patients with schizophrenia.Social cognition is related to severity of psychotic features.