Mental disorders are considered to be costly in terms of elevated rates of healthcare utilization and increased disability days. For the general German population there has been a lack of data on healthcare utilization and disability rates. The available administrative data are incomplete and problematic because they are based on routine clinical diagnoses that lack reliability. Using the German Health Interview and Examination Survey 1998/99 and its Mental Health Supplement (GHS-MHS) data, this paper examines healthcare utilization and disability associated with mental disorders in a representative sample of the general adult population (18-65 years, n=4181). After reviewing the size and treatment status of mental disorders in Germany, data about primary care or specialist consultations, inpatient treatment, and disability days in the last year are presented for the following groups: (1) subjects who never met the criteria of the diagnosis of a mental disorder, (2) subjects who had one or more mental disorders in the past but none in the past year ("remitted") and (3) subjects who currently (within the last year) met the criteria of one or more mental disorders. We found increased healthcare utilization as well as more disability days in those individuals with a current diagnosis. Remitted persons, however, showed results similar to those who never had a diagnosis of a mental disorder during their lifetimes. The results are consistent with the episodic course of many mental disorders and furthermore might indicate that treatment of mental disorders might contribute to a substantial reduction of direct and indirect illness costs.