Dendrobium officinale Kimura & Migo (D. officinale) is a well-recognized traditional Chinese medicinal herb that is both medicinal and edible. Contemporary pharmacological studies have revealed that D. officinale contains abundant bioactive compounds, including polysaccharides, flavonoids, alkaloids, and dendrobine, exhibiting diverse pharmacological properties such as antioxidant, anti-inflammatory, and immunomodulatory effects. However, the industrial application of D. officinale faces many problems, such as the scarcity of wild resources, low natural reproduction rate, and slow growth rate as well as the lack of relevant industrial standards. Nevertheless, substantial advancements, including the exploitation of artificial propagation techniques and breeding of new varieties, have been achieved in recent years. These developments have effectively addressed the challenges associated with its low natural reproduction rate and the scarcity of wild resources. This review summarizes the progress in the industrial development, seedling cultivation, and pharmacological exploration of D. officinale in recent years. Furthermore, it analyzes current research inadequacies and offers strategic solutions to enhance its application in healthcare and medicine.