Insomnia’s impact on psychological functioning is known to increase suicide risk. The underlying mechanisms of this association are unclear. This study explored psychological factors including depression, emotion dysregulation, perceived burdensomeness and thwarted belongingness as possible mechanisms in the association between insomnia and suicidal ideation in a nationally representative sample for age, sex and race in the United States. Participants (N = 428) completed a Qualtrics survey of demographics, Insomnia Severity Index, Difficulties in Emotion Regulation Scale, Interpersonal Needs Questionnaire, Frequency of Suicidal Ideation Inventory and PROMIS-Depression and PROMIS-Anxiety short forms. Regression analyses and structural equation modeling were used. Insomnia severity was associated with greater suicidality (p < 0.001, CI = 0.19–0.31). When accounting for depression severity, emotion dysregulation and perceived burdensomeness fully mediated insomnia–suicidal ideation frequency association (β = 0.04, p = 0.045; β = 0.24, p < 0.001). Insomnia has major implications on psychological functioning, which may serve as mechanisms through which insomnia confers risk for suicidality. Our model posits that insomnia prevents regional sleep restoration in brain regions involved in psychological functioning, thereby conferring risk for suicidality. Insomnia may be an ideal upstream target for reducing suicidality and its risk factors, including depression, emotion dysregulation and perceived burdensomeness.