Is there any illness that leads to psychological problems like mental confusion ?

Yes: There are a myriad of physical illnesses that can lead to confusion. The best way to determine this is through a comprehensive medical evaluation.

Too Many To Count: Mental confusion is generally a symptom of an underlying disorder(s). Infections, trauma, endocrine, cardiovascular disorders anxiety, and, depression are just a few. Mental confusion should always be reported immediately to your primary care physician or to the nearest emergency room. You need trained medical personnel to determine the underlying cause and its severity.