Transgender people experience widespread prejudice in society and health professionals are often complicit in this discrimination. Transgender people are at a greater risk of depression, anxiety, self-harm and suicide than the majority of the population. This article presents a literature review that explores issues for mental health nursing and the care of transgender people. The literature identifies that nurses display negative assumptions about transgender people, there is a lack of appropriate education and limited evidence to support practice. Mental health nurses have extensive experience in caring for stigmatised populations; with appropriate knowledge and education, a healthcare environment can be provided that is open, welcoming and safe to transgender people, and steps can be made towards closing the gap in healthcare disparities.