IntroductionThe emergence of COVID‐19 in 2020 led to an increase in stressors for students on rural placements, but little is known about how this impacted their mental health and well‐being.ObjectiveTo explore self‐reported mental health, stress and well‐being concerns among allied health, nursing and medical students who completed a scheduled University Department of Rural Health (UDRH)‐faciliated rural placement in Australia between February and October 2020 (n = 1066).DesignCross‐sectional design involving an online survey measuring mental health, stress and well‐being concerns. The survey was distributed via email by the 16 UDRHs across Australia.FindingsA total of 42.9%, 63.8% and 41.1% of survey respondents reported concerns about their mental health, levels of stress and well‐being, respectively, during the early stages of the pandemic. Multiple logistic regression models found clinical training, course progression and financial concerns were predictive of negative mental health, increased stress and reduced well‐being, while feeling connected was predictive of positive mental health, reduced stress and increased well‐being.DiscussionUniversities, UDRHs and health placement sites all have a responsibility to support the mental health and well‐being of students undertaking rural placements. This support needs to encompass strategies to reduce financial stress, protect learning opportunities and increase connectedness. Ensuring adequate resourcing and support for those providing rural placement opportunities will safeguard quality rural placements during times of pandemic disruption.