The scientific community is paying increasing attention to plant waste valorization, and also to “greener” practices in the agriculture, food and cosmetic sectors. In this context, unused forest biomass (e.g., leaves, seed cones, branches/twigs, bark and sapwood) of Cryptomeria japonica, a commercially important tree throughout Asia and the Azores Archipelago (Portugal), is currently waste/by-products of wood processing that can be converted into eco-friendly and high added-value products, such as essential oils (EOs), with social, environmental and economic impacts. Plant-derived EOs are complex mixtures of metabolites, mostly terpenes and terpenoids, with valuable bioactivities (e.g., antioxidant, anti-inflammatory, anticancer, neuroprotective, antidepressant, antimicrobial, antiviral and pesticide), which can find applications in several industries, such as pharmaceutical, medical, aromatherapy, food, cosmetic, perfumery, household and agrochemical (e.g., biopesticides), with manifold approaches. The EOs components are also of value for taxonomic investigations. It is known that the variation in EOs chemical composition and, consequently, in their biological activities and commercial use, is due to different exogenous and endogenous factors that can lead to ecotypes or chemotypes in the same plant species. The present paper aims to provide an overview of the chemical composition, biological properties and proposals of valorization of C. japonica EO from several countries, and also to indicate gaps in the current knowledge.