The historic use of chamomile as medicine dates back many years. Roman chamomile, or Chamaemelum nobile L., and German chamomile, or Matricaria chamomilla L., are the two types of chamomile that are most frequently used and have medicinal uses. The plant is made up of numerous parts, including Its therapeutic qualities are caused by flavonoids, terpenoids, and coumarins. The study covers current advancements that support the drug's significance as a therapeutic agent in several fields, including hepatoprotection, anti-inflammatory, antioxidant, analgesic, antibacterial, anti-allergic, anticancer, and anti-hypertensive. Cancer, metabolic disorders, microbial infections, neurological and cardiovascular diseases, and other ailments claim the lives of millions of people globally. The evaluation of herbal plants’ potential as complementary medicines has been a major focus of recent research. One of these species is the chamomile (Matricaria chamomilla), which belongs to the Asteraceae family. It elicits protective properties against a variety of ailments, including neuropathies, cancer, ulcers, bacterial and fungal infections, inflammation, and oxidative stress. The many medicinal and ethnomedical uses of chamomile are the focus of this review. We also discuss the underlying mechanism and therapeutic effects of the constituents of chamomile.