Mounsey played high school hockey at Concord High School in Concord, New Hampshire. Playing on the "boys" team, she became the first female player to win the New Hampshire (Class L) Player of the Year award, after leading Concord to the 1996 state championship.
Mounsey went on to play for Brown University where she was a two-sports athlete, ice-hockey and field hockey.
In ice hockey, she immediately made an impact on the ice, earning Ivy League and ECAC Rookie of the Year honors. During the 1997–1998 season, Tara Mounsey took a hiatus from college hockey to focus on the Winter Olympics. At the Games, she collected two goals and four assists, which was tied for tops among defenders for Team USA. For her outstanding performance, she was also selected to the All-World Team. She and her teammates won the first ever Olympic gold medal in Women ice hockey defeating Canada 3–1. They are credited for growing the sport's popularity for future generations with enrollment rising from 28,000 girls playing at the time to 80,000 playing today.

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