There are prominent sex differences in the prevalence of numerous mental health and neurodiverse conditions. Both sex and gender related factors affect the expression and diagnosis of mental health conditions. Even though, sex and gender research has been integrated in research policies, the underlying mechanisms and interactions between them are still not fully understood. This lack of knowledge has harmful consequences for diagnosis and treatment of mental health conditions. Hence, we have set up a co-creation session in a one week workshop, including a multidisciplinary team of 25 scientists, clinicians and policy makers, to identify the main barriers in sex and gender research in neuroscience of mental health. We provide recommendations and solutions for three focus areas including neuroscientific methods, bridging the gap between research and the clinic, and stakeholder collaborations. These recommendations include guidelines for documenting sex and gender methods and results, analysis beyond the binary and open science, which will drive our understanding of sex and gender related mechanisms in neuroscience. This will ultimately benefit public health as this is an important step towards precision medicine and may function as an archetype for studying diversity.