Under new amendments to the Mental Health Act 2007, hospital managers must ensure that patients aged under 18 are treated in a setting appropriate for their age group.
But according to the charity, figures in the past six months show more than 4,000 bed days for 16- and 17-year-olds were spent on adult wards.
YoungMinds chief executive Sarah Brennan said: "Being admitted into hospital for any purpose can be a scary and daunting experience at any age.
"We know that such fear can be multiplied for children and young people admitted to an adult psychiatric ward."
Appropriate physical facilities, suitably trained staff and access to the same educational opportunities as peers are some of the things that YoungMinds is calling for.
A hospital routine that will allow personal, social and educational development to continue as normally as possible is also recommended.
The changes to legislation follow the government's pledge to ensure that no young person under 18 will be admitted to an adult psychiatric ward inappropriately by April 2010, and instead an age-appropriate environment will be made available.
"While the information that is available shows progress has been made, there is still work to be done to ensure we meet all our young people's needs," added Brennan.
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