<p>Covid-19 infection had disrupted the routine care for most medical settings. Residential psychiatric rehabilitation settings while do remain a relatively closed community often face challenges when an outbreak occurs due to limited access to emergency care and challenges in ensuring adherence to guidelines by the residents due to the nature of their illness. The current study was taken up to outline the experience of managing the COVID-19 outbreak (during the third wave: Omicron prominent) in a psychiatric rehabilitation centre in South India. A retrospective analysis was carried out by evaluating the data of patients (N = 32) at the rehabilitation facility during the outbreak (January 2022). The management during the first two waves, reasons for outbreak in third wave, the creation of four zones and the steps taken to contain the outbreak are discussed. The study analyses the symptoms, signs, and outcomes of the infected patients. The outbreak management followed the 4-zone algorithm (Fig. 1) with 22/32 (69%) having mild symptoms and developing COVID-19 positive status managed onsite. Fatigue (78.1%), Sore throat (62.5%), and rhinitis (62.5%) were the most common symptoms. 93% had been double vaccinated and none required any acute ward shift. Only three (9.4%) of the patients reported worsening of their psychiatry symptoms during outbreak. The study emphasizes the need for preparedness, having pre-set protocols for managing epidemics and pandemics in institutional settings. Anticipatory training of ground staff, having predesignated room/zone for isolation, additional monitoring and support instruments would help manage most infected psychiatry clients without escalation of care. Having to be prepared for the unexpected, the article provides an experiential framework for outbreaks in psychiatric rehabilitation settings.</p>