This study explored the effects of a brief psychoeducative cognitive behavioral therapy group led by paraprofessional case managers on symptoms of stress and anxiety in individuals with schizophrenia and schizoaffective disorder in an outpatient community mental health setting. The study included 41 individuals with schizophrenia and schizoaffective disorder who were living independently or in a supported housing environment. Anxiety symptoms were reduced in the treatment group and symptoms of auditory hallucinations were significantly reduced in the treatment group. The results showed a correlation between anxiety symptoms and auditory hallucinations, consistent with previous research findings; further research is needed to test the suggestion that group therapy for anxiety may indirectly reduce positive symptoms of schizophrenia. Implications and limitations are discussed.