Background: Community-based mental health and social interventions focusing on housing stability, integrated care and psychosocial support are increasingly recognised as essential for improving the mental health and wellbeing of people experiencing homelessness. This review synthesizes how these interventions address mental health and social determinants of health. Methods: Following PRISMA 2020 guidelines, a search of six electronic databases (2019–2025) was conducted (PROSPERO: CRD420250653260). The review included 29 quantitative, qualitative, and mixed-methods studies examining community-based interventions for people experiencing homelessness and mental health conditions. Results: Community-based interventions, particularly Housing First models, were consistently associated with improved housing stability, mental health outcomes, and programme retention. Integrated multidisciplinary services and outreach promote psychosocial wellbeing, continuity of care and reducing emergency service use. Peer-led programs support social integration, although evidence for technology-based tools remains mixed. Conclusions: Addressing social determinants of health through structured community-based interventions is essential to tackle mental health inequalities. The findings highlight the importance of multidisciplinary and mental health nursing approaches that support continuity of care, psychosocial wellbeing, and social inclusion within vulnerable populations.