Despite the considerable advancement in medical sciences and allopathic medicines, the use of complementary and alternative medicines has dramatically increased worldwide. Bacopa monnieri is one of the most important and highly studied medicinal plants that is being used as an ayurvedic or ethnomedicine for thousands of years. It improves intelligence rejuvenation and treats mental illness, fever, a blood disorder, anemia, etc. The main phytoconstituents of B. monnieri have been reported as alkaloids, saponins, flavonoids, and glycosides, including various sterols and potassium salts. The plant possesses multiple pharmacological properties, such as memory enhancer, antidepressant, anti-inflammatory, antioxidant, gastroprotective, anxiolytic, hepato-protective, anti-cancer, anti-hyperglycemic, antimicrobial, etc. The pharmacological properties of the plant can be attributed to the presence of saponin-bacoside. The formulations of this plant are used for clinical applications by numerous research groups and pharmaceutical companies worldwide, including in Asia, Australia, and the United States of America. Considering the importance of the plant, the present review summarizes the ethnomedicinal and pharmacological activities of B. monnieri, which may help in exploring the untapped potential of this natural gift to humankind.