This chapter analyses ethical drivers of the deinstitutionalisation process in psychiatry over the past 50 years and highlights typical ethical dilemmas of current community psychiatry. Specific attention is paid to issues regarding the revolving door phenomenon, rehabilitation and recovery, assertive outreach models and coercive outpatient treatment. The recent debate about a possible process of reinstitutionalisation in psychiatry and the associated ethical concerns are reported. A case example is provided to illustrate the ethical aspects of practical care that are described in the chapter.