Mental health is a significant issue worldwide, and the contemporary nursing graduate needs to be skilled in all aspects of patient care, including proficiency in physical and psychosocial health care and competency in assessing and managing mental health challenges. Developing clinical ability in mental health care can be difficult without adequate exposure to mental health care situations. While simulation has gained increasing popularity in nurse education in recent years, there has been limited investigation of the effect of high-fidelity manikin simulation in the development of knowledge and confidence in mental health care in undergraduate nurse education. To investigate this further, a review of the published literature from 2000 to 2016 was undertaken, which found nine articles that met criteria for inclusion in this review. Simulation was found to increase learner confidence, satisfaction with learning, and self-efficacy in knowledge and communication in mental health care scenarios through the opportunity to rehearse complex care situations. While there are limitations in the available research, simulation holds potential to enhance undergraduate nurse education in mental health care.