Abstract: Background: In light of the coronavirus pandemic, a team leader’s ability to attain and maintain healthy workplaces is crucial. Nurse leaders should aim to mitigate workplace anxieties by promoting team cohesiveness, mutual support, and the wellbeing of members. Aim: This study was conducted at the beginning of COVID-19 pandemic to assess the effect of leadership competencies on workplace civility climate and mental well-being at an Egyptian hospital for mental health. Design: Descriptive correlation design was used. Tools: Measures used were leadership competencies, workplace civility climate, and the Warwick-Edinburgh mental wellbeing scale. Results: More than half of the samples were satisfied with leaders’ competencies, three quarter of them rated the workplace environment as respectful, and more than three quarter of them reported moderate or good mental wellbeing. Statistically significant correlations were found between leadership competencies and both workplace civility climate and mental well-being. Conclusion: leaders at El Azazi Hospital were assessed as proficient and providing a positive civility climate, but were not sensitive to the mental wellbeing of staff. Recommendation: Future research to investigate what specific factors affect mental well-being among psychiatric nurses rather than leadership competencies is recommended.