Background: The frequency of psychiatric drug utilization in cancer patients has been thoroughly examined. However, the majority of studies have concentrated on specific cancer kinds or specific groups of people. Currently, there have been no research studies conducted in Oman, Gulf countries, or the Arab area to examine the frequency of psychiatric drug utilization among cancer patients in Oman, Gulf countries, or the Arab region. Aim: This research aims to investigate the prevalence of psychotropic drug use among patients with different types and stages of cancer at SQCCCRC from 2021 until 2023. Methods: A cross-sectional study has examined data from 266 cancer patients' medical records received from SQCCCRC. The data was collected over six months, from 12 November 2023 to 2 June 2024. The inclusion criteria encompassed all adult cancer patients at SQCCCRC who were administered at least one psychiatric drug, irrespective of cancer type or stage. Data was obtained from the medical records of cancer patients who attended SQCCCRC. The dataset comprised sociodemographic variables, cancer-related information, and data on the utilization of psychiatric drugs. Results: Among the 4,317 cancer patients who visited SQCCCRC, 1,467 patients were given at least one psychiatric drug, leading to a prevalence rate of 33.98%. Out of these patients, most of them were prescribed less than three psychiatric medications (141 patients, 53.01%), while smaller percentages were administered 3 to 5 medications (107 patients, 40.23%) or more than five medications (18 patients, 6.77%). Chi-square tests indicated statistically significant associations between the number of psychotropic medications and cancer stage (p = 0.001). No statistically significant associations were identified between cancer types and psychotropic medication use when analyzed using Chi-square tests and, in specific cases, Fisher's exact test. Logistic regression analysis identified significant associations between specific psychotropic medications and the reasons for their use. Quetiapine was found to have a significant association with anxiety (odds ratio [OR] = 8.990, 95% confidence interval [CI] = 2.477–32.626, p = 0.001). Similarly, Duloxetine with anxiety (OR = 3.132, 95% CI = 1.101–8.909, p = 0.032), delirium (OR = 18.972, 95% CI = 2.284–157.560, p = 0.006), and pain management (OR = 8.119, 95% CI = 1.509–43.854, p = 0.015). Olanzapine showed a strong association with delirium (odds ratio [OR] = 8.582, 95% confidence interval [CI] = 1.406–52.404, p = 0.020) and sleeplessness (OR = 2.727, 95% CI = 1.117–6.659, p = 0.028). Clonazepam was found to have a strong association with pain management (odds ratio = 0.114, 95% confidence interval = 0.014–0.923, p-value = 0.042). Conclusion: The results of this study highlight the relatively high occurrence of psychotropic drug utilization among cancer patients at SQCCCRC. The study identifies significant associations between specific medications and the medical conditions for which they are indicated. However, contrary to initial assumptions, no significant associations were found between the use of psychotropic medications and specific cancer types. Instead, the advanced stage of cancer demonstrated a significant association with psychotropic drug use, emphasizing the intricate relationship between cancer progression and mental health care. These findings underscore the need for targeted interventions to optimize the use of psychotropic medications in this patient group. Healthcare practitioners should incorporate comprehensive mental health assessments into cancer treatment to ensure appropriate prescription of psychotropic drugs, effectively addressing both psychological and physical needs. Further research is recommended to explore the factors influencing psychotropic drug use and to establish evidence-based guidelines for their administration in cancer care settings.