<p>Individuals with severe mental health challenges [SMHCs] often have unmet needs that are beyond the scope of traditional mental health services. These needs are typically met by community agencies, charities and peer support groups. Happy Chat [HC] is one such peer-support group whose goal is to address social isolation, and loneliness by creating a safe space to facilitate the development of informal friendships among individuals with SMHCs in the community. Nineteen participants were interviewed as part of a qualitative evaluation of HC. Data were subjected to thematic analysis. Four categories emerged from the data. They were: Difficulties faced by persons with SMHCs (6 codes), Supports provided by HC (15 codes), Outcomes achieved (15 codes) and Continuing challenges (4 codes). Key supports reported by participants included a welcoming and non-judgemental space, that is inclusive and safe, continuing human connections, ongoing social, emotional and general support, as well as support and care during a crisis. Key outcomes reported by participants included improved confidence and motivation to leave the house, having a place of comfort and a sense of belonging, improved self-care, and social life, a new identity, and a renewed sense of hope and purpose. Four supports and one outcome were identified as being more closely aligned to the CHIME framework of personal recovery. Ongoing challenges reported by participants such as limited funding, are common in small, resource-limited peer support groups. Further research is needed to demonstrate any association between meeting basic and psychosocial needs and achieving personal recovery among individuals with SMHCs.</p>