Carbamazepine is a tricyclic compound structurally related to imipramine that has been used since the 1960's for the treatment of trigeminal neuralgias and then approved as an anticonvulsant in the U.S. in 1974. In the last decade the use of carbamazepine has been expanded to include the treatment of certain disorders of mood and behaviour. In this paper possible clinical applications of carbamazepine in psychiatry are reviewed along with its pharmacokinetic and pharmacodynamic profile. Also discussed are adverse reactions and drug interactions which are relevant to its use.