Lavandula angustifolia Mill., commonly known as lavender, is a highly regarded medicinal herb in Unani Medicine. Its aerial parts, including leaves and flowers, are utilized for their therapeutic properties, and the plant is a common ingredient in cosmetic products. The essential oil derived from lavender is known for its sedative, carminative, anti-depressive, anti-inflammatory, and antimicrobial properties. These pharmacological effects are attributed to various bioactive compounds like betulin, betulinic acid, lactone, 3 beta-formyl ursolic acid, essential oil, glycolic acid, valeric acid, and linalyl acetate. This review aims to comprehensively explore Lavandula angustifolia Mill., covering identification, pharmacological actions, traditional uses, and recent scientific investigations. Utilizing a diverse range of sources, including scientific literature and research studies, the review adopts a comprehensive approach to compile information. The diverse array of bioactive constituents in lavender contributes to its medicinal profile, making it a versatile herbal remedy. Emphasis is placed on documenting and highlighting various pharmacological activities, reinforcing lavender's status as a potent therapeutic agent. Beyond its medicinal applications, the review delves into lavender's historical uses in Unani Medicine and its contemporary role in cosmetic formulations. Lavandula angustifolia Mill. emerges as a herbal powerhouse, offering a holistic approach to health and well-being. This review serves as a valuable resource for practitioners of traditional medicine and modern science alike, bridging the gap between historical wisdom and contemporary research in the realm of herbal medicine.