The discipline of Clinical Psychology has been in operation at the Kasturba Medical College, Manipal since 1974, as a part of the Department of Psychiatry. Since its inception, it has been catering to various specialised needs such as clinical services, teaching and research, in the area of mental health.

Over the years, its aims, objectives and priorities have grown keeping in mind the international trends. In order to facilitate further development, from the year 2000, the discipline was given the status of an independent department of Kasturba Medical College, Manipal. The department functions in liaison with the Department of Psychiatry and other specialties. The department is recognised by the Rehabilitation Council of India.