This study was undertaken for the purpose of drawing implication of the society in which the high rate of involuntary and long-term hospitalization are sustained through examining cases of Italy, which has restrained compulsory hospitalization of the people with psychiatric disabilities at most and developed Mental Health and community-centered social services by Mental Health System. For the achievement of goal, it demonstrated historical background of mental health reform, mental health related laws, mental health budget, payment systems and Mental Health Delivery System of Italy. Also, it analyzed the detailed progression, content and performance of Mental Health Reform through cases of Trieste, a representative local government in the reform of mental health. It also suggested the policy implication which Italian Mental Health System can bring to Korean Mental Health Welfare System. First, The barriers to deinstitutionalization of people with psychiatric disabilities, it is a matter of policy will rather than a mental health law system itself. Second, It is necessary to examine the possibility that the involuntary admission is possible only in public mental hospital. Third, In order to efficiencies mental health budget, it is necessary to examine the payment of social services for medical aid and the introduction of the personal budget system. Fourth, It is necessary to review the Contracting-out system to secure of the Public Services of the mental health community center. Fifth, It is necessary to activate of organization on the people with psychiatric disabilities. Sixth, A society activist role of mental health professionals is required.