Introduction: Covid-19 pandemic has had severe impact on mental health and well-being of people around the globe. The uncountable loss of life, disruption of face-to-face health services and the uncertainty that followed raised concerns over mental health of all people. The impact was much worse in hospitalised covid-19 individuals. Most of the studies done on Covid-19 and mental health were focused on general population and health care workers. In our clinical practise, we observed an increased level of anxiety, stress and depression among hospitalised covid-19 individuals. Hence, we aim to assess the prevalence of psychological distress in these patients and there by validate our observation. Aims and Objectives: To assess the psychological impact of mild to moderate covid-19 disease in hospitalised patients. Materials and methods: A cross-sectional study was conducted in mild to moderate Covid19 patients admitted to the tertiary care centre. A total of 501 patients filled 2 questionnaires – Depression, Anxiety, and Stress Scale-21(DASS-21) and Psycho-Social Assessment scale (PSA), a self-structured questionnaire. Results: In the depression subscale of DASS-21, 141(28.1%) had mild depression, 101(20.2%) had moderate depression, and 8 (1.6%) had severe depression. In the anxiety subscale, 105(20.9%) had mild anxiety, 198 (39.5%) had moderate anxiety, 35 (7.0%) had severe anxiety and 3 (0.6%) had extremely severe anxiety. In the stress subscale, 132(26.4 %) had mild stress, 161(32.1%) had moderate stress and 51 (10.2%) had severe stress. Patients above 30 years of age had moderate anxiety and stress, with stress being statistically significant among all age groups and gender. There were about 70% prevalence rate in all subgroups in PSA scale with anxiety being highest with 78%