Background Systemic Lupus Erythematosus (SLE) is an autoimmune disease with multiorgan involvement presenting with a myriad of symptoms, including neuropsychiatric symptoms. Although many studies have evaluated screening questionnaires based psychiatric morbidity, very few studies have used contemporary diagnostic criteria. Objective This study aimed to evaluate the prevalence of psychiatric disorders in patients with SLE admitted to a tertiary care hospital. Methods A total of 79 patients diagnosed with SLE for at least for 1 year, who were not in delirium were assessed by a qualified psychiatrist for psychiatric morbidity as per the International Classification of Diseases, 10th Revision (ICD-10) criteria. Additionally, these patients were assessed on Patient Health Questionnaire-9 (PHQ-9) item version, Patient Health Questionnaire-15 (PHQ-15) item version, Generalized Anxiety Disorder-7 item scale and Montreal Cognitive Assessment (MoCA). Results 51% ( n = 40) of the participants were diagnosed with a psychiatric diagnosis, with depressive disorders being the most common, seen in 36.7% ( n = 29) of the participants. Additionally, 10% ( n = 8) participants were diagnosed with adjustment disorder and 2.5% ( n = 2) were diagnosed with anxiety (not otherwise specified). Only one patient was diagnosed with organic psychosis. On PHQ-9, 39.8% ( n = 33) were diagnosed with depression. 44.3% ( n = 35) expressed death wishes and/or suicidal ideations. On PHQ-15, 17.7% ( n = 14) of the participants scored for severe somatic distress (score >15). On GAD-7, 55.7% ( n = 44) screened positive for anxiety symptoms, but only 7.6% ( n = ) had a score of 15 or more to indicate severe anxiety. Nearly half ( n = 43; 52%) of the participants also had cognitive impairment as assessed on MoCA, with 13.3% ( n = 11) of the participants having scores indicating severe dementia. Conclusions Patients with SLE have a high prevalence of psychiatric comorbidities and should be routinely screened for psychiatric morbidity. They should be appropriately treated, to improve the overall treatment outcomes.