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Psychiatric comorbidities impact one-third of dermatology patients, yet psychodermatologic conditions remain underrecognized and challenging to diagnose and manage. The 2023 EADV/ESDaP/APMNA consensus introduced a refined two-category classification that more accurately reflects the bidirectional mind-skin relationship and aligns diagnosis with treatment. This review reflects an evidence-based approach to the recognition, diagnosis, and management of psychodermatologic conditions. We ground our approach in the neuroimmune mechanisms underlying the mind-skin axis and present a stepwise diagnostic framework that incorporates validated screening instruments. Treatments are stratified by category 1 (primary psychiatric disorders with cutaneous manifestations) and category 2 (primary dermatoses with psychiatric impact). We also delineate the scope of psychotropic prescribing appropriate for dermatologists and identify clear thresholds for psychiatric involvement. Multilevel solutions to barriers impeding care are proposed. Dermatologists who integrate psychodermatologic assessment into routine practice are poised to improve outcomes for a substantial portion of patients.