Abstract Objective: Stigma is very common among patients and caregivers of patients with severe mental disorders; however, there is a lack of comparative study data between schizophrenia and bipolar affective disorder in the Indian setting. Methods: For this, caregivers of patients with schizophrenia (n = 50) or bipolar affective disorder (n = 50) were assessed on the Affiliate Stigma Scale (ASS). Patients with schizophrenia (n = 50) or bipolar affective disorder (n = 50) were assessed on the Internalized Stigma of Mental Illness Scale (ISMIS). Results: Patients and caregivers of patients with schizophrenia have significantly higher mean scores on ISMIS and ASS, respectively, as compared to patients and caregivers of patients with bipolar affective disorder. Conclusion: This study suggests that patients with schizophrenia and their caregivers experience higher stigma than the caregivers of patients with bipolar affective disorder. Higher stigma is associated with higher psychological morbidity in the patients and caregivers. Therefore, clinicians managing patients with severe mental disorders must focus on stigma and psychological distress among the patients and caregivers and plan intervention strategies to reduce stigma.