The main difference between both categories is that people suffering with psychotic disorders or psychosis have no contact with reality i.e. they are unaware of their surroundings whereas individuals of other category’s reality contact is intact.
Psychotic disorders are severe mental disorders that cause abnormal thinking and perceptions. Two of the main symptoms are delusions and hallucinations. Schizophrenia is one type of psychotic disorder. Other mental disorders in this group include brief psychotic disorder, schizotypal personality disorder, delusional disorder, schizophreniform disorder, schizoaffective disorder, catatonia, substance/medication-induced psychotic disorder, psychosis due to a medical condition, other specified schizophrenia spectrum, unspecified schizophrenia spectrum, and other psychotic disorder.
Whereas
Psychoneurotic or simply neurotic disorders cause a sense of distress and deficit in functioning in the absence of delusions and hallucinations. Mood, somatoform, anxiety, dissociative disorders are included in this category.