An important, sometimes controversial feature of all psychological phenomena is whether they are categorical or dimensional. A conceptual and psychometric framework is described for distinguishing whether the latent structure behind manifest categories (e.g., psychiatric diagnoses, attitude groups, or stages of development) is category-like or dimension-like. Being dimension-like requires (a) within-category heterogeneity and (b) between-category quantitative differences. Being category-like requires (a) within-category homogeneity and (b) between-category qualitative differences. The relation between this classification and abrupt versus smooth differences is discussed. Hybrid structures are possible. Being category-like is itself a matter of degree; the authors offer a formalized framework to determine this degree. Empirical applications to personality disorders, attitudes toward capital punishment, and stages of cognitive development illustrate the approach.