Internalization of stigma often leads to negative feelings (about self), maladapted behavior, identity transformation, or stereotype endorsement. The purpose of the study: was to identify the relationship between internalized stigma, self esteem and the capacity for intimacy among bipolar and schizophrenic hospitalized patients. Design: Descriptive correlational research design was used in this study. Setting: The study was carried out at the psychiatric inpatient unit of the department of Psychiatry at Assiut University Hospital. The study sample comprised 100 patients (55 patients with schizophrenia and 45 of them with bipolar disorders). Instruments of the study: three instruments were used for data collection: namely: Internalized stigma of mental illness scale (ISMI), Self – esteem inventory, and Intimacy attitude scale – revised. Results: The main results yielded by the study proved that there were highly statistical significant differences between internalized stigma, self – esteem and intimacy scales , there were stastically significant differences between self- esteem, stereotype and social withdrawal, and there were positive strong correlation between self- esteem and intimacy. Recommendation: Design and implement psychoeducational programs to improve patient's self-esteem and decrease internalized stigma. Longitudinal studies that monitor levels of patient's self-esteem and stigma over time are needed to evaluate patient's capacity for intimate relation.