The connection between disrupted sleep and mental illness is far more than coincidental. Researchers now recognize sleep disorders and psychiatric implications as intricately linked, with insomnia, hypersomnia, and parasomnias contributing to and resulting from conditions like depression, bipolar disorder, and PTSD. Sleep disturbances can precede a psychiatric episode or worsen ongoing symptoms, creating a cyclical pattern that demands clinical attention. Cognitive Behavioral Therapy for Insomnia (CBT-I), melatonin regulation, light exposure therapy, and digital sleep hygiene tools are gaining prominence in mental health care. Moreover, innovations in polysomnography and wearable sleep trackers allow for more accurate diagnosis. Addressing sleep quality is increasingly seen as a critical step in long-term psychiatric recovery and prevention.