Psychologists play a crucial role in healthcare environments. In these settings, they work alongside other healthcare professionals to address the mental and emotional aspects of an individual’s care. Psychologists contribute to patients’ holistic and functional treatment through formal assessments, therapeutic interventions, and collaborative care. In this chapter, we discuss various healthcare settings, the process of referrals and consultations, and how to respond to them effectively through a functional and holistic framework. Illustrative cases demonstrate the application of these frameworks, followed by a critical review of the importance of capturing diversity factors for comprehensive diagnosis and treatment planning. We review additional diagnostic considerations and provide a brief dos and don’ts guide that outlines best practices for psychologists in healthcare settings.