Previous research suggests that having schizophrenia involves not being fully equipped to engage in daily occupations. This study was aimed at exploring relationships between occupational engagement and the issues of self-related variables, psychiatric symptoms, and quality of life. Seventy-four outpatients with schizophrenia entered the study. Instruments used in this study were Profile of Occupational Engagement in People with Schizophrenia, Locus of Control, Mastery, Sense of Coherence, Brief Psychiatric Rating Scale, and Lancashire Quality of Life Profile. The results showed that a high level of occupational engagement was related to higher ratings of self-related variables, fewer psychiatric symptoms, and better ratings of quality of life, and vice versa. A significant difference and a linear trend were found among the three subgroups of different levels of occupational engagement and the estimated variables. In the regression model, negative symptoms and internal locus of control together explained 47% of the variance in occupational engagement. The results add a new dimension to understanding mental health and suggest the importance of assessing the level of occupational engagement.