Septic encephalopathy is characterized by diffuse brain dysfunction that occurs in patients with sepsis without direct evidence of intracranial infection or metabolic causes unrelated to the infectious process. It is a common complication among critically ill patients, occurring in 9-71% of cases. Diagnosis involves assessing for altered mental status in the setting of sepsis through EEG, biomarkers of brain injury, and neuroimaging while excluding other potential causes. Management focuses on early treatment of the underlying sepsis through organ support and intensive care, with adjunctive therapies like EEG monitoring and antipsychotics potentially helping to guide care and symptoms.