Introduction: Student nurses have a preconceived set of attitudes and beliefs towards patients with mental illness. Majority of them are fearful or believe that mentally ill are dangerous in some way. However the clinical placement has some role in altering the attitudes and beliefs of students towards mentally ill people. Aims and Objectives: The study was undertaken to assess the impact of psychiatric clinical placement on the attitude of students towards mentally ill patients. Material and Methods: A quasi experimental study design was used to collect data from thirty three baccaulerate nursing students using beliefs towards Mental Illness Scale (BMIS) before and after the clinical placement. Results: A significant change was found in the attitude of students towards mentally ill patients after the clinical placement. Conclusion: Clinical placement in psychiatric nursing should be mandatorily carried out by all institutions offering nursing programs as it can provide a good morale for student nurses to pursue higher studies in Psychiatric nursing and helps to render effective care for mentally ill people.