This systematic review evaluates the efficacy of psychosocial interventions for individuals experiencing first-episode psychosis (FEP) across multiple recovery outcomes. Drawing from 35 studies, the analysis synthesizes evidence on symptom reduction, social and role functioning improvement, continuity of care, hospitalization rates, and other psychological outcomes. Regarding symptom reduction, specialized FEP programs demonstrated decreases across positive, negative, and general symptoms. Cognitive Behavioral Therapy (CBT) interventions also showed promise in improving psychiatric symptoms, while skills training interventions were effective in enhancing positive and negative symptoms. Social and role functioning improvements were observed across different interventions, including specialized FEP care and vocational support. Furthermore, specialized FEP programs generally led to reduced hospitalization rates and improved continuity of care, while CBT and other interventions improved psychological outcomes, such as enhanced coping skills and cognitive functioning. Most studies, particularly those of higher quality, reported positive outcomes across multiple domains. Future research should prioritize comparative efficacy, intervention duration and modality effects, and address disparities in access and utilization of FEP interventions across diverse contexts. By advancing our understanding of effective psychosocial interventions for FEP, this review offers valuable insights for clinicians, researchers, and policymakers aiming to optimize outcomes and mitigate the burden of psychosis-related disabilities.