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Few debates have proved more contentious than social policies targeting lesbian, gay, and bisexual (LGB) individuals. Given the prominence of these policies in the public discourse, this article provides a synthesis of the empirical literature on the relationship between social policies and adverse mental health outcomes in LGB populations. The aims of this article are to: (a) review evidence that social policies may directly contribute to mental health disparities in LGB populations; (b) examine how these policies may also indirectly lead to adverse mental health outcomes through multiple pathways, including decreased access to health-promoting resources, as well as increases in exposure to stressors and elevations in psychological risk factors for mental health problems; (c) consider the role that psychologists can play in addressing mental health disparities in LGB populations; (d) evaluate the limitations of existing work and propose several areas for future inquiry; and (e) discuss the implications of research for social policies targeting LGB populations. It is argued that eliminating mental health disparities in LGB populations will require research and interventions that integrate multiple levels of analysis.