ABSTRACT Neuropsychiatric disorders, including anxiety, depression, schizophrenia, autism spectrum disorder (ASD), obsessive‐compulsive disorder (OCD), etc., pose a significant global health burden, yet their underlying neural mechanisms remain poorly understood. The olfactory tubercle (OT), a ventral striatal component, emerges as a critical hub integrating olfactory information with reward, emotion, and motivation. Dysfunctions within OT related neural circuits are heavily implicated in neuropsychiatric disorders. This review synthesises OT's anatomical and functional architecture, highlighting its laminar organisation dominated by D1/D2 dopamine receptor‐expressing medium spiny neurons and islands of Calleja granule cells. The OT acts as a nexus, receiving input from the olfactory bulb and connecting extensively with key regions like the ventral tegmental area, nucleus accumbens, prefrontal cortex, and periaqueductal gray. Its rich neurochemical landscape, particularly dopaminergic transmission, alongside glutamate, GABA, and serotonin systems, underpins synaptic plasticity crucial for sensory integration and behavioural adaptation. Evidence links abnormal OT activity and specific pathways to anxiety‐ and depression‐like behaviours. The OT's roles in multisensory integration, social behaviour, and stress response further implicate it in schizophrenia, ASD, and OCD. Olfactory deficits, as seen in COVID‐19, also highlight OT vulnerability. Understanding OT circuit mechanisms offers novel perspectives for pathophysiology and potential neuromodulation‐based therapies. Future research should leverage advanced techniques to decipher precise OT‐mediated multimodal integration and its translational potential for treating neuropsychiatric conditions.