The pandemic may have a long-term effect on psychological distress as well as wellness behaviors, especially for nurses. It is time to find out the clear policies and procedures to support health workers, for a sustainable health workforce. The aim of this research was to compile existing information on the effects of nurses’ mental health and wellness on their work in Indonesia and Thailand. A systematic review of mental health and psychological wellbeing following PRISMA guidelines was conducted through e-databases searching, including PubMed, EMBASE, Scopus, and Pubmed from 2020 up to 2023. The literature was screened via EndNote X21. A total of 4,015 studies were retrieved, 14 were deemed appropriate for inclusion (7 from Indonesia and 7 from Thailand). Our study indicates that COVID-19 has a considerable impact on the psychological wellbeing of nurses in community setting. In Thailand, the mental health outcomes included anxiety, panic, stress, isolation, fear, worthlessness, PTSD, and depression. The factors that affect the mental well-being of the respondents are education, finance, work pattern, and lifestyle changes. In Indonesia, the mental health outcomes included anxiety, stress, burnout, and depression. The most influential factor with the psychological well-being of nurses was psychological stress. Researching community nurses’ mental wellbeing and psychological distress post-COVID-19 in Indonesia and Thailand is crucial for promoting their resilience, well-being, and job retention. Implementation of holistic staff wellness policies that appeal to nursing staff’s physical and psychological well-being, along with psychological health support services, will effectively address the psychological issues experienced by nurses after the pandemic.