OBJECTIVE: To assess the relationships between depressive symptoms and functional outcomes in the treatment of patients diagnosed with schizophrenia or schizoaffective disorder. METHODS: This was a post-hoc analysis of a randomized, double-blind, 24-week study of antipsychotic treatment for patients diagnosed with schizophrenia or schizoaffective disorders with prominent depressive symptoms (N=394). Measures included the SCAP Health Questionnaire (SCAP-HQ) for functional outcomes and the Montgomery-Åsberg Depression Rating Scale (MADRS) for depressive symptoms. Associations between depressive symptoms at baseline and functional outcomes at baseline and at 24-weeks (LOCF) were evaluated controlling for severity of schizophrenia symptoms (measured with the Positive and Negative Symptoms Scale (PANSS)) and extrapyramidal symptoms measured with the Barnes Akathisia Scale, the Simpson-Angus Scales, and the Abnormal Involuntary Movement Scale (AIMS). RESULTS: At baseline, depressive symptoms were significantly correlated with baseline PANSS Positive Symptoms and General Psychopathology (p<0.001), but not with Negative Symptoms. At baseline, greater severity of depressive symptoms significantly correlated with a higher likelihood of baseline violent behaviors, suicidal ideations, suicide attempts, and substance use; and a decreased likelihood of baseline participation in a day treatment program and common leisure activities (all p<0.050). Baseline severity of depressive symptoms was significantly associated with poorer mental health functioning, increased likelihood of suicidal ideations and substance use, and with decreased likelihood of participation in a day treatment program at endpoint (all p<0.050). CONCLUSIONS: Depressive symptoms in schizophrenia or schizoaffective disorder are associated with worse functional outcomes, both concurrently and after 24-weeks of treatment with antipsychotic medications.