Abstract. Finding optimal policies for general partially observable Markov decision processes (POMDPs) is computationally difficult primarily due to the need to perform dynamic-programming (DP) updates over the entire belief space. In this paper, we first study a somewhat restrictive class of special POMDPs called almost-discernible POMDPs and propose an anytime algorithm called spaceprogressive value iteration(SPVI). SPVI does not perform DP updates over the entire belief space. Rather it restricts DP updates to a belief subspace that grows over time. It is argued that given sufficient time SPVI can find near-optimal policies for almost-discernible POMDPs. We then show how SPVI can be applied to more a general class of POMDPs. Empirical results are presented to show the effectiveness of SPVI.