AbstractPhotodynamic and photothermal therapy have emerged as standard treatments for a range of tumors and microvascular diseases. However, a significant gap remains in the clinical availability of photosensitizers. Among the vast array of photosensitizers, hypocrellin–a plant‐derived photosensitizing drug–stands out as a potential candidate. It boasts straightforward preparation and purification processes, high phototoxicity, low toxicity in the absence of light, and rapid metabolism within the body. However, hypocrellin's limited water solubility and weak absorption in the phototherapeutic window pose challenges to its use in treating solid tumors. Given the limited number of reviews on this subject, a thorough investigation of hypocrellin is essential. This review focuses on the efforts of scientists to address these challenges through chemical modifications of hypocrellin and its co‐assembly with hydrophilic drug delivery vehicles. A notable advantage of hypocrellin over other photosensitizers is its amenability to modification, resulting in pure monomeric derivatives. Recent studies have shown that modifying specific functional groups on hypocrellin's parent ring can yield more potent derivatives, positioning it as a highly promising strategy in tumor therapy. Beyond its therapeutic potential, this review also explores the diverse applications of hypocrellin, including its role in bacterial and fungal inactivation, as well as its efficacy in treating malignant tumors. Additionally, the utilization of nanoparticles as carriers for modified hypocrellin presents new possibilities for clinical applications. This review offers a detailed examination of recent developments in hypocrellin modification, highlighting its potential to advance photodynamic therapy and a wider range of biomedical applications.