Objective To explore the application effect of interactive teaching method in nursing psychology course. Methods A total of 200 nursing students of grade 2022 were selected as the observation group, and the interactive teaching method was applied; 200 nursing students of grade 2021 were selected as the control group, and the traditional teaching method. The final scores and teaching satisfaction of the two groups were compared. Results The theoretical knowledge, practical ability and total scores of the observation group were higher than those of the control group, and the differences were statistically significant (P <0.05). The scores of clinical thinking divergence, classroom atmosphere, understanding memory effect and teaching satisfaction in the observation group were higher than those in the control group, and the differences were statistically significant (P <0.05). Conclusion The application of interactive teaching method in nursing psychology course can improve students' academic performance and improve their satisfaction with teaching, which is worthy of application.