Chronic Respiratory Disease (CRD), such as, asthma, interstitial lung disease, and chronic obstructive pulmonary disease (COPD), have a significant negative influence on patient's physical and mental health. Stress, anxiety, and depression are common psychological injuries that worsen lung function, increase mortality, exacerbations, and healthcare utilisation in patients with chronic respiratory disease (CRD). Pulmonary rehabilitation is a gold standard non-pharmacological management for CRD—where strategies of care delivery is based on a bio-psycho-social model of integrated therapies. But there are still issues since there are global differences in the way programs are designed and implemented, and there are no standardised psychological assessments or therapies available for patients with CRD. This review critically examines the challenges in standardizing pulmonary rehabilitation programs and the lack of health psychological assessment or interventions for patients with CRD. Additionally, it suggests necessary updates to respiratory physiotherapy curricula with neuroscience of breathing in clarifying the relationship between psychological factors and inflammation in CRD. The review calls for an urgent need for increased global research funding to enhance psychological therapies as integrated respiratory care management and improve outcomes for patients with CRD.