Psychosis is an abnormal condition of the mind that results in difficulties determining what is real and what is not. Symptoms may include false beliefs (delusions) and seeing or hearing things that others do not see or hear (hallucinations). Other symptoms may include incoherent speech and behavior that is inappropriate for the situation.
Yes of course. Allah, The Glorious, says in Qur'an (Surely, only by remembering Allah, hearts gain peace and tranquility) (Sura 23, Verse 28).
Remembering Allah and taking His names and repeating it is very useful in treating psychosis and any depression or anxiety or psychological problem. Remembering Allah keeps the heart peaceful and prevents the causes of psychosis.
More remembering Allah (SWT) brings more peace and comfort in the heart and mind.