Trauma is a pervasive issue within inpatient psychiatric care, where a significant number of patients have trauma histories that contribute to their mental health disorders. Trauma-Focused Cognitive Behavioral Therapy (TF-CBT) has emerged as an effective, evidence-based treatment for trauma-related mental health conditions, particularly for patients suffering from post-traumatic stress disorder (PTSD). Mental health nurses, as front-line caregivers, have a critical role in the application of TF-CBT, offering trauma-informed care that can significantly enhance patient outcomes. This article provides a comprehensive review of how mental health nurses can implement TF-CBT in inpatient psychiatric settings, discusses the competencies required, addresses barriers to implementation, and offers recommendations for practice. Through this review, we emphasize the potential for improved patient care and outcomes when trauma is adequately addressed in psychiatric care settings.