This case study highlights the prevalence of mental health issues (Psychosocial disorder) among the homeless population across 141 wards of kolkata by conducting a baseline survey and offers an alternate model of understanding mental distress as well as care giving where interventions are need to be designed at every stage of the continuum viz. Stress-Distress-Disorder-Disability. Besides, it develops an alternative pathway of community care using community-based treatment model that follows the principle of minimal and nescessary medical intervention with maximun community engagement providing not only clinical but also social recovery of the client by involving neighbours and community as strategic partners. The case study begins by presenting some pertinent data showing growth of urban houseless households between the last two census and particularly in the state of West Bengal and prevalence of different types of mental illnesses among the homeless population with varying severity. It also highlights the vulnerabilities of homeless people viz. no safety, living in extreme weather conditions, unhygeinic living conditions, harassment by the State/Police and torture by the community. Lack of social schemes excerbates their present condition. It also deliberates upon how there are very few organizations working in this domain and how Iswar Sankalpa embarked on this journey with formulation of Naya Daur. It delineates in detail what this community-based teatment and care model entails and how community is involved in planning and providing care and sustaining the care giving model. The case study also highlights the challenges and shortcomings of this model in providing care to extremely vulnerable population such as women battling psychosocial disability, person with severe co-morbidities, physical health conditions and persons addicted to hard drugs. Further, it outlines steps and measures undertaken to overcome the shortcomings and provide care to these people.