Human N-myc downstream-regulated gene 2 (NDRG2) has been shown to be a multifunctional protein associated with cell proliferation, differentiation, transmembrane transport, and stress responses. In most mammalian brains, NDRG2 is principally expressed in astrocytic cells throughout different regions. NDRG2 has been increasingly implicated in the regulation of neurogenesis and in the development of nervous system diseases, including neurodegeneration, ischemia, and glioblastoma. This review summarizes the distribution and subcellular localization of NDRG2 in brain tissues, highlights the physiological actions of NDRG2 in the nervous system, and further discusses the roles of NDRG2 during the occurrence and development of several nervous system diseases.