Background: Indian mental health care professionals share some ethical concerns similar to those of their Western counterparts e.g. boundary violations, confidentiality issues, caregiving by multiple healthcare workers of varying competence, as well as additional issues around decisional autonomy, cultural issues around psychometric assessments and chiefly, hierarchical relationships with healthcare workers. Methods: Authors (SKB, AS) shadowed young healthcare professionals across duties such as ward rounds, detailed history taking, while conducting psychometric assessments and during psychotherapy sessions but did not directly interact with the patients. The epistemological position of authors was social constructionism, with the method of enquiry being participant as observer, employing unstructured, direct observation. Results: A total of 11 post graduate trainees (7 in clinical psychology, 4 in psychiatry) and 2 certified junior clinical psychologists were observed for a period of 60 days. Key themes emphasizing the ethical dilemmas encountered by mental health care professionals were extracted from case notes. Discussion: Major themes found were: confidentiality vs clinical demands and constraints, autonomy vs. consent and assent, informed consent vs. deception, clinical judgement vs. results on standardized assessment instruments and power hierarchy vs equivalence via disclosure. Conclusion: The current exploratory study provides a small but significant insight into the challenges and ethical dilemmas encountered by young mental health professionals. It highlights the complex problem of abiding by the ethical principles, growing need to make culture specific ethical decisions for an acceptable model of mental health treatment and developing a healthy trusting relationship between healthcare providers and patients, and their families. Students and faculty need to be alert to ethical issues, teaching of ethical principles following the case-based approach advocated by the UNESCO Bioethics Chair may be the best option. Role plays and other active modes of learning need to be started as soon as students begin interacting with patients.