Mental illness poses a significant disease burden in South Asia, affecting millions and contributing to substantial disability, economic loss, and social marginalization. The region faces high prevalence rates of depression, anxiety, schizophrenia, and substance use disorders, compounded by stigma, lack of mental health infrastructure, and socio-economic disparities. Limited access to psychiatric services, inadequate mental health policies, and cultural beliefs further exacerbate the crisis. Psychosocial interventions play a critical role in addressing mental health needs in South Asia which is affected by increase treatment gap due to scarcity of Mental health professionals. Community-based care, family interventions, peer support programs, and digital mental health solutions have shown promise in bridging the treatment gap. These interventions help improve patient outcomes by fostering social support, enhancing coping mechanisms, and reducing stigma. This chapter aims to explore the regional challenges and opportunities in mental healthcare, examine the existing psychosocial intervention models in the region, and to discuss the strategies to overcome barriers such as stigma, resource constraints, and policy gaps. The chapter also provides recommendations and future directions for strengthening mental health systems in South Asia through policy reforms, community engagement, and integration of psychosocial interventions into primary healthcare.