The interplay between psychiatric conditions and dermatological disorders is complex and multifaceted, often resulting in significant challenges for both diagnosis and treatment. This narrative review examines associations between specific psychiatric conditions, trichotillomania, attention deficit hyperactivity disorder, schizophrenia, bipolar disorder, and various dermatological disorders. The present investigation delves into pathophysiological mechanisms, clinical presentations, and management strategies of these comorbid conditions. Psychiatric disorders can exacerbate dermatological conditions through mechanical trauma, medication side effects, and stress-induced exacerbations, while dermatological disorders can lead to significant psychiatric morbidity. The biopsychosocial approach, emphasizing the importance of integrated care involving dermatologists and mental health professionals, is crucial for improving patient outcomes. This review highlights the need for increased awareness and interdisciplinary collaboration to address the dual burden of psychiatric and dermatological disorders, ultimately enhancing the quality of life for affected individuals.