Gallows humor is a coping mechanism used by healthcare professionals to manage stress and emotional burden. Understanding its role in nursing education can help educators and students navigate the complexities of the profession. This study examined its significance through a literature review and a survey of nursing students and educators. The literature review included 15 peer-reviewed articles from databases like GALILEO, CINAHL, PubMed, and Scopus, highlighting both its benefits and ethical concerns. Findings suggest gallows humor is commonly used for stress management and is generally viewed as beneficial for learning and emotional resilience. However, concerns were raised about its potential to contribute to desensitization and unprofessional behavior. While some participants found it appropriate in specific contexts, others emphasized the need for clear guidelines to ensure its ethical use in nursing education. This study highlights the dual nature of gallows humor as both a coping strategy and an ethical challenge. While it can support stress relief and camaraderie, its use must be guided by professional standards. Educators should facilitate discussions on its appropriate application. Future research should explore its long-term impact on nursing practice and strategies for responsible integration into nursing education.