Nardostachys jatamansi (Nj.Cr) DC. is an endangered, primitive and therapeutic agent in the family Valerianaceae. The herbs and rhizomes of this hairy, perennial, dwarf and herbaceous plant are used for medicinal purpose. Mostly herbs and rhizome are used for this hairy, perennial, dwarf and herbaceous plant. Nardostachys jatamansi has been reported to have many therapeutic activities like antifungal, antimicrobial, antioxidant, Hepatoprotective and cardioprotective properties. It is also useful in the management of insomnia and CNS disorders. The vasodilator, bronchodilator, spasmolytic and platelet aggregation inhibition activities of the plant have also been reported. In phytochemical analysis jatamansone, Nardostachone and actinidine have been reported to be present in the plant. This review article is summary of the potential benefits of this medicinal plant as reported in literature. The review also highlights the need for the use of this plant in Ayurveda system of medicine and future prospects for further research.