Objective: The study assessed the effect of the Boys Town psychoeducational treatment model on the therapeutic milieu of a state-operated psychiatric hospital serving children and adolescents. Methods: Direct care staff from two units for adolescents and one unit for children were trained to implement the model, which guides staff in planned and spontaneous interactions with patients. Patients rated their satisfaction with direct care staff immediately before the model was implemented and one year later. Staff perceptions of changes in the treatment environment were assessed by retrospective interviews. Results: Patients in two of the three units indicated significantly greater satisfaction with direct care staff after the psychoeducational treatment model was implemented. Results from retrospective interviews with staff showed statistically significant improvements in their perceptions of the therapeutic milieu. Staff comments recorded during the interviews supported the quantitative results. Conclusions: Training direct care staff at a children's psychiatric hospital to use the Boys Town psychoeducational treatment model significantly improved perceptions of the therapeutic milieu among both staff and patients.