WHO has declared COVID-19 as a pandemic on March 11, 2020. Like the virus affects the entire body, the pandemic affected the entire global trade and economy, leading to the loss of jobs and businesses. Thus, it would be appropriate to quote COVID-19 as a social disease rather than treating only as a medical condition. The COVID-19 pandemic, being a social disease, affects all the individuals of the society in terms of their physical, mental, social health and challenges the economic status of the entire population, irrespective of whether they were physically sick. However, the mental health impact of the COVID-19 pandemic has been overlooked, given its benign nature. We can anticipate a higher prevalence of psychological distress during any pandemic than typical situations. The COVID-19 instils fear and anxiety among people. Isolation and quarantine to reduce disease transmission have a negative impact on one’s mental health. The lockdowns lead to the closure of educational institutions and workplaces, loss of jobs, economic loss, lack of physical activity, restrictions on travel and gatherings. All these factors cumulatively affected the mental stamina of millions worldwide. Given its importance, we have reviewed the impact of COVID-19 on the psychological status of general population.