Abstract: Objective: To explore the effect of fall risk management in preventing falling of hospitalized psychiatric patients and reducing the damage impact of falling. Methods: Totally 4647 psychiatric patients hospitalized from July in 2011 to July in 2013 were participated as observation group, while psychiatric patients hospitalized from June in 2009 to June in 2011 as control group. Risk management methods were used in observation group. Results: The damage degree in grade I, II, III between two groups had significant difference (P<0.001). The incidence of falls between two groups had no significant difference (P>0.05), however, the reporting rate about no hurt fall event between two groups had significant difference (X2=12.392, P<0.001). Patients’compliance of fall risk management between two groups had significant difference (P<0.01). There was no complaint and nursing dispute in observation group, while there was one case of fall-related nursing dispute in control group, resolved through economic compensation. Conclusion: Fall risk management of hospitalized psychiatric patients can promote the quality awareness and risk awareness of nursing staff, and improve their ability to prevent falls. It also can promote the patients to participate in fall prevention management, reduce and mitigate the serious injury caused by falls, improve the nursing quality and ensure safety of patients.