Demoralization is a mental state comprising low morale and a sense of poor coping, in which pessimism, helplessness and hopelessness can lead to loss of meaning and purpose in life. A systematic review reported a prevalence rate of 13-18% in 2295 patients with advanced cancer. Empirical data have shown a stronger relationship between demoralization and suicidal thinking than depression and wish to die. Therapies that aim to restore meaning and hope in life help to ameliorate demoralization. An Australian field survey of 320 clinicians examined perceptions of the utility of demoralization as a ‘specifier’ for diagnoses of adjustment and major depressive disorders. Clinicians reported it to be a useful concept to deepen diagnostic understanding, treatment choice and ability to communicate with clinicians and patients. Demoralization is a contagious state of mind, necessitating family and multidisciplinary team work to prevent its inadvertent transmission among care providers.