The relationship between delusions and hallucinations (psychotic featu
res) in melancholic depression and auditory P300 was studied. Forty pa
tients with melancholic depression as per DSM-III-R were studied, 20 o
f whom had hallucinations and/or delusions. The 20 patients of the two
groups were individually marched on age, gender, sociodemographic var
iables, and psychopathology (except for psychotic features). Auditory
P300 obtained by the ''oddball paradigm'' showed that those with hallu
cinations and/or delusions had a significantly smaller P3 amplitude. S
ignificant correlations between ''psychotic features'' and P3 amplitud
e was found. Implications of these findings on research, classificatio
n, and management of depression have been outlined.