Celastrus paniculatus (CP) has been used for thousands of years in Indian system of medicine, Ayurveda. It is referred to as Jyotishmati and as the name suggests, boosts intelligence. Seed and seed oil are the most used parts of this deciduous plant and oral and intranasal routes are most preferred for delivering this drug in Ayurveda. Studies in laboratory animals have shown CP improves intellect and memory and is beneficial in neurodegeneration. Clinical studies in mentally retarded children have also shown that it enhances the Intelligence quotient. CP also ameliorates stress associated cognitive dysfunctions. The herb possesses antioxidant, free radical scavenging and neuroprotective activity. This manuscript reviews current information on the neuropharmacological effects of Celastrus paniculatus (CP) in different neuropsychiatric conditions.