Background: Chronic kidney disease (CKD) presents a profound clinical challenge, not only affecting physical health but also significantly impacting mental well-being. The complex interplay between CKD and psychiatric morbidities remains understudied. Aim: To address the existing gap by investigating the prevalence and patterns of psychiatric morbidity and cognitive dysfunction among CKD patients. Materials and Methods: This study adopted a cross-sectional and hospital-based study design. It included 72 patients diagnosed with CKD who fulfilled the inclusion and exclusion criteria. Structured clinical interviews, validated assessment tools (GHQ-12, HAD-S, AUDIT, Addenbrooke’s Cognitive Examination-III), and a proforma gathered data on socio-demographic factors, illness severity, treatment history, and psychiatric history. Results: 70.1% of participants exhibited psychological distress, indicating a high prevalence of psychiatric morbidity. Anxiety disorders were prevalent, affecting 58.1% of participants, while depression affected 32.3% (12.9% mild, 20.8% moderate, 4.8% severe). Cognitive impairment varied with CKD severity, with Stage 3 showing better scores than Stage 4, and hemodialysis patients exhibiting the most significant decline. Conclusion: This study underscores the substantial burden of psychiatric morbidity and cognitive dysfunction in CKD patients within a general hospital setting. Early identification and integrated interventions in mental health care are crucial for improving CKD patient outcomes and well-being.