Background: Cyperus rotundus, an important medicinal plant belonging to the Cyperaceae family, is therapeutically used in many traditional systems of medicine, such as Unani medicine, Ayurveda, Siddha, Homeopathy, Chinese medicine, etc. Aim: The prime goal of this review is to provide a scientific basis and classical references for clinical use and further scientific exploration of Cyperus rotundus. Materials and Methods: This systemic review was carried out after searching Unani classical and other ethnobotanical literature and published research work available on PubMed, SCOPUS, Science Direct, Google Scholar, Research Gate, etc. Results: Cyperus rotundus L. is the accepted botanical name of Su'ad Kūfī, Nagarmotha, or Nutgrass as referred in Unani and other traditional medicines. It is grown in India, China, the Philippines, Thailand, Taiwan, Indonesia, Korea, Vietnam, Malaysia, the Pacific Islands, South America, Africa, the Middle East, North America, Mexico, Australia, New Zealand, and Europe. Usually, the rhizome of this important medicinal plant is therapeutically used for various ailments, including indigestion, constipation, dysentery, neurogenic gastralgia, skin diseases, mental weakness, cardiac weakness, nervine weakness, palpitation, weakness of stomach, flatulence, retention of urine, amenorrhea, dribbling of urine, etc. It contains many important secondary metabolites, including flavonoids, tannins, glycosides, monoterpenes, sesquiterpenes, sitosterol, alkaloids, saponins, terpenoids, essential oils, sugar, protein, amino acids, etc., which have been reported to possess antibacterial, anti-tumour, anticonvulsant, antidiabetic, anti-diarrhoeal, anti-inflammatory, antilipidemic, antimalarial, anti-obesity, antioxidant, hepatoprotective, cardioprotective, and neuroprotective pharmacological activities. Conclusion: It is concluded that abundant bioactive compounds identified and separated from Cyperus rotundus possess potential medicinal values on different systems of the body.