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Ultra-processed foods (UPFs), operationalized primarily via the NOVA classification, can be treated as a planetary nutrition “nexus exposure” because they are measurable at population level, show recurring observational associations with common mental disorder-related outcomes, and are plausibly linked to food-system externalities through shared upstream drivers such as industrial formulation, marketing power, and value chains optimized for shelf stability and high turnover. This narrative review integrates evidence across three domains: (1) UPF consumption and mental health outcomes, (2) UPF-related environmental footprints with explicit attention to system boundaries and post-farm stages, and (3) policy levers capable of shifting exposure environments while centering equity and monitorability. Across observational syntheses, higher UPF intake is consistently associated with worse profiles for depressive outcomes, anxiety-related outcomes, and non-specific psychological distress, with prospective cohorts strengthening temporal ordering for depressive outcomes while residual confounding and reverse causality remain plausible. Mechanistic interpretation is therefore framed as plausibility rather than proof, with convergent pathways including diet quality displacement, food structure and satiety dynamics that promote overconsumption and metabolic shifts, gut-related pathways, and inflammatory phenotypes, while UPF-specific mediation evidence in humans remains limited. Environmental evidence suggests UPF-rich diets are often linked to higher dietary footprints in unadjusted comparisons, but conclusions depend on total energy intake, substitution patterns, and whether footprint accounting includes post-farm stages such as processing and packaging, which can materially change inferences. Policy implications favor coordinated packages that shift defaults and incentives, including fiscal measures, marketing restrictions, interpretive front-of-pack labeling supported by nutrient profiling, and procurement standards, implemented with equity safeguards and accountability systems that track substitution pathways, distributional effects, mental health indicators where feasible, and multi-indicator environmental outcomes using transparent value-chain boundaries. This integrated framing supports precautionary action to reduce default UPF exposure while strengthening evaluation systems designed to detect trade-offs and real-world co-benefits.