The utilization of quality of life (QOL) in psychiatric community rehabilitation could be enhanced by developing an appropriate conceptual model of QOL. The focus of this study was to construct and test, using path analytic techniques, a pertinent conceptual model of QOL among people with schizophrenia living in the community. A total of 201 participants with schizophrenia living in the community were assessed with regard to their clinical characteristics and QOL. Findings largely supported the proposed model in which community/social functioning was the strongest predictor of QOL, followed by symptom levels. Important implications for the design and implementation of appropriate services in functioning augmentation that resulted in QOL enhancement were highlighted. Further recommendations on both clinical and environmental interventions to promote QOL were suggested.