Subjects included 48 adolescents from an urban public high school and 113 adolescents from two psychiatric facilities who ranged in age from 12 to 18 years. The sample included 60 males and 101 females, and 79 percent were white. The study examined three indicators of psychological health or dysfunction: self- esteem, depression, and purpose in life. Drug use represented the fourth variable. Results indicated that the relationship between substance use and psychological health was linear. Increasing drug use was associated with increased depression, decreased self-esteem, and deterioration of purpose in life among the high school students. The analysis provided no support for the hypothesis that drug use and psychological health indicators had a curvilinear relationship. 9 references and 1 table