Several studies have demonstrated a direct link between psoriasis, stress and psychiatric comorbidity. We assessed the effect of relaxation therapy on psoriasis severity, quality of life, stress level and psychiatric comorbidity. Patients were assessed for stress, anxiety, depression, quality of life and severity of disease, using standard instruments. Patients were divided into two as cases and pair matched controls. The first group was given relaxation therapy in addition to the standard dermatology treatment and the second group was given only the standard dermatology treatment. The patients were followed up on first week, second week, first month and second month. Twenty one out of 30 cases (70%) achieved PASI 50 at the end of 2 months. While only 4 out of 30 (13.3%) of the control group achieved the same at the end of the study. There was statistically significant difference between cases and controls in PASI, DLQI, HADS scores with a P value of .000 each at the end of the study. But there was no statistically significant difference in perceived stress score between cases and controls. Psoriasis has significant impact in the quality of life and psychiatric comorbidity. Psychological interventions like relaxation therapy can decrease disease severity and improve quality of life.