Persons with mental illness may internalize mental illness stigma - self stigma. Perceived stigma results in lower self-esteem. Self-stigmatizated persons are unable to overcome negative expectations and stereotypes about mental illness. They constrict their social networks, stay isolated and frequently avoid treatment. On the other side self-esteem alone has been found to predict life statisfaction and is related with positive outcome among people with schizophrenia. Our study aim to determine level of internalized stigma and self-esteem in hospitalized schizophrenic patients at Psychiatric Clinic in Nish. Study encompasses 30 patients, 16 males and 14 females, average age of 38,6 years with diagnosis of schizophrenia. The internalized stigma is measured with The Internalized Stigma of Mental Illness Scale (ISMIS), the 29-item, 4 point Likert scale. Items are summed to provide 5 major scale scores: alienation, stereotype endorsment, discrimination experience and stigma resistance. The Rosenberg Self Esteem Scale (SEC) is used to measure self-esteem. It is 10-item, 4 point Likert scale. Scores range from 10 to 40 with higher scores indicating higher self-esteem. Our results on ISMIS show mean value for alienation 2,64, for stereotype endorment 1,84, for discrimination experience 2,48, for social withdrawal 2,36 and for stigma resistance 2,21. Mean value on SEC is 27,6. Results points to internalized stigma as important factor with influence on self esteem in patients with diagnosis of schizophrenia that that has to be reduced.