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    Saint Laurent was in the military for 20 days before the stress of hazing by fellow soldiers led to him being admitted to a military hospital, where he received news that he had been fired from Dior. This exacerbated his condition, and he was transferred to Val-de-Grâce military hospital, where he was given large doses of sedatives and psychoactive drugs, and subjected to electroshock therapy. Saint Laurent himself traced the origin of both his mental problems and his drug addictions to this time in hospital.[10] After his release from the hospital in November 1960, Saint Laurent sued Dior for breach of contract and won. After a period of convalescence, he and his partner, industrialist Pierre Bergé, started their own fashion house Yves Saint Laurent YSL with funds from American millionaire J. Mack Robinson.[16] The couple split romantically in 1976 but remained business partners.

    He was the first French couturier to come out with a full prêt-à-porter (ready-to-wear) line, although Alicia Drake credits this move with Saint Laurent's wish to democratize fashion;[18] others[who?] point out that other couture houses were preparing prêt-à-porter lines at the same time – the House of Yves Saint Laurent merely announced its line first. The first of the company's Rive Gauche stores, which sold the prêt-à-porter line, opened on the rue de Tournon in the 6th arrondissement of Paris, on 26 September 1966. The first customer was Catherine Deneuve.He ended up doing many costumes for her in films such as Heartbeat, Mississippi Mermaid, and Love to Eternity. In 1983, Saint Laurent became the first living fashion designer to be honored by the Metropolitan Museum of Art with a solo exhibition. In 2001, he was awarded the rank of Commander of the Légion d'Honneur by French President Jacques Chirac. Saint Laurent retired in 2002 and became increasingly reclusive, living at his homes in Normandy and Morocco with his pet French Bulldog Moujik.

    He also created a foundation with Bergé in Paris to trace the history of the house of YSL, complete with 15,000 objects and 5,000 pieces of clothing.[23]
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