Litsea cubeba (Lour.) Pers. is a valuable essential oil-producing plant species. It is a shrub and is mostly found in India, China, Japan, Taiwan, and, Northern Thailand. L. cubeba essential oil, which is rich in citral, has been used as a traditional medicine to treat several diseases. The fresh fruits of L. cubeba are used for the extraction of essential oil, and the oil is intense yellowish in color, fresh and has a sweet aromatic flavor. The composition of essential oil varies based on the extraction method, cultivar, plant parts, time of sampling and processing. The current manuscript summarizes the composition as well as pharmacological and economic importance of L. cubeba essential oil. The literature review revealed that the essential oil of L. cubeba exhibited antioxidant, antimicrobial, and antiproliferative activities; also, it can be used as pesticide, repellent and fragrance agent in cosmetics. However, further studies are required to bridge the scientific gap of transferring the scientific findings into commercially valuable products. Also, studies on the potential of L. cubeba essential oil in other possible fields like aromatherapy and cognition are desirable.