<p>Background: Persons with mental illness (PwMI) continue to face considerable barriers in accessing employment, particularly due to stigma, limited employer awareness, and inadequate workplace accommodations. Despite global evidence supporting the employability of PwMI, limited data exists on employer perspectives in the Indian context. This study aims to explore employers’ knowledge, attitude, and willingness to hire and support PwMI in Tamil Nadu, India. Materials and methods: A cross-sectional survey was conducted among employers across four organizational sectors: corporate, non-corporate, unorganized, and NGOs. A self-structured questionnaire assessed socio-demographic characteristics, beliefs, willingness to hire, workplace accommodations, and perceived facilitators and barriers. Data were analysed using descriptive statistics. Results: A total of 286 participants took part in the study. While the majority of the employers believed that PwMI deserved equal employment opportunities (64.7%), more than half (53.5%) were uncertain about employing PwMI in their company and several expressed concerns about hiring limitations (57.7%). There were several discrepancies between the attitude towards PwMI and reported willingness/readiness to accommodate PwMI. Willingness and awareness were highest among corporate and NGO employers, while unorganized sectors demonstrated more inclusive attitudes despite lower implementation support. Discussion: Findings reflect a disconnect between positive attitudes and actual preparedness to employ PwMI. While employers express conceptual support, actionable knowledge and structured accommodations remain limited. Sectoral differences indicate the need for tailored interventions, awareness training, and inclusive hiring policies. Conclusion: There is potential for inclusive hiring of PwMI, but targeted strategies are essential to translate willingness into action and address sector-specific barriers.</p>