Evidence from experimental psychology provides unequivocal support for enhanced creativity among individuals who are prone to psychotic and mood disorders. At the same time, there is strong epidemiological evidence for greater incidence of creative achievement among those diagnosed with bipolar disorder (but not schizophrenia). This review examines the evidence for common factors predisposing an individual to creativity and psychosis, as well as factors that distinguish the capacity for creative achievement from the creative potential that may be inherent in psychosis vulnerability. Factors implicated as common to creative potential and psychosis vulnerability include enhanced divergent thinking, reduced latent inhibition and preattentive filtering mechanisms; on the other hand, greater cognitive flexibility, motivation, and openness to experience tend to be associated with creative achievement, but not psychosis. This evidence is considered with respect to the utility of tailored vocational interventions to effectively harness creative potential, which may be useful for young individuals in the early stages of illness or their unaffected family members.