The aim was to evaluate the effects of simulation based learning in psychiatry on self-efficacy, problem solving ability, and knowledge of nursing students. PubMed, Cochrane Library, Embase, CINAHL, KISS, RISS, and ScienceOn were searched until July 2023. A systematic review and meta-analysis was conducted of 22 studies (20 reports), with a total of 1,414 nursing students. Overall, simulation based learning in psychiatry appeared to have beneficial effects on self-efficacy (ES = 0.65, p < 0.001, I2=71%), problem solving ability (ES = 0.15, p < 0.001, I2=27%), and knowledge (ES = 0.45, p = 0.003, I2=84%). These results demonstrate that, if integrated appropriately, a simulation educational approach can be used as an active learning methodology in psychiatric academic settings.