Mark Mullen, 22, was spotted in a wooded area close to Ribby Hall Village in Wrea Green by a member of the public this morning, police said.
He has since been taken back to The Harbour, in Preston New Road, Marton, a spokesman added.
Mr Mullen had not been seen since he left the mental health facility shortly before lunchtime on Thursday.
He was meant to return at an agreed time but never, and officers in Blackpool appealed for help in finding him yesterday.
Residents were urged not to approach Mr Mullen, who requires daily medication for his condition, and to instead call officers.