Chinese Star anise (Illicium verum hook.f.) spice is generally consumed in food, beverages and confectionery item due to their characteristic spiciness as well as zesty flavor. Star anise is extensively employed in Chinese traditional medicine and as a tonic for home remedies since ancient times for many complaints such as gastrointestinal disorder, colic discomfort and inflammation. The active components present in star anise has been identified by many researchers and several favorable, pharmacological effects of its constituents confirmed and authenticated recently by experiment. Additionally, many studies reveal numerous health effects of this spice. This article concisely reviews the most noticeable investigations which have validated the potential of star anise such as anxiolytic, anti-microbial, antioxidant, chemopreventive, insecticidal, flu prevention, atherogenesis, lactagouge, anticolic action. However star anise is usually nontoxic and used as a functional ingredient of daily cuisine.