Acute & Transient Psychotic Disorders(ATPD) are a heterogeneous group of disorders and they need to be differentiated from Schziphrenia and organic psychotic disorders.Previous studies have observed significant association of Acute & Transient Psychotic Disorder (ATPD) with summer onset, fever, and viral & protozoal infections, suggesting contribution of biological factors in occurrence of ATPD. Methods: This study was undertaken using Magnetic Resonance Imaging (MRI) of brain in patients with ATPD in a hospital setting. 20 consecutive in-patients of ATPD were subjected to MRI of brain during active psychotic phase and they were subsequently followed up for their course for next six month to see their diagnostic stability. Results: Twenty percent of patients showed significant MRI changes in the brain. Significantly more patients of ATPD associated with schizophrenic symptoms had MRI brain change like hyperintensity foci and temporal sclerosis. Conclusion: Findings indicate that the subgroup of ATPD with schizophrenia like symptoms exhibiting more MRI changes may be closure to schizophrenia than other subgroups of ATPD