The Department of Psychology, founded in 2013, is an integral part of the institute and is actively involved in teaching, research, and training activities in the field of mental health education. It holds the honour of being the first Psychology department at Alagappa University, Karaikudi. Operating under the Faculty of Science, the department continues to raise awareness about the nature and application of the discipline across the underdeveloped areas of Ramanathapuram, Tamil Nadu.

Beyond the conventional core courses, the UG and PG curricula cover a wide range of subfields through choice-based credits – including Developmental, Criminal, Indian, Positive, Educational and Health psychology, Psychopathology, Personality Development, Interpersonal Conflict Management, Experimental Psychology, Social Psychology, Behaviour Modification, Psychometry, Advanced Cognitive and Social Psychology, Geriatric Challenges and Development, and Psychological Statistics, among others.

To assist faculty pedagogy on diversity and inclusion, the department offers workshops and instructional materials, and through a dedicated Diversity Concentration incorporates training on diversity, equity, and social justice into the undergraduate courses. Through excellence in research, teaching, and service, the Department of Psychology seeks to improve the mental health and wellbeing of both individuals and communities.

The department's focus is to prepare students to promote mental health in individual and group settings among diverse populations using culturally appropriate methodologies, facilitating voluntary mental health-related behavioural and social change through the principles of behavioural and social sciences.