Heterocycles have gained recognition as vital components in approved drugs, drawing substantial attention from the scientific community. Ionic liquids (ILs) have been utilized for their transformative role in heterocycle synthesis, showcasing distinctive properties that are pivotal in diverse chemical transformations, while also acting as effective catalysts and offering safer alternatives to volatile organic solvents. This review delves into the synthesis of nitrogen- and oxygen-containing heterocyclic structures, employing various ILs such as ammonium, cholinium, DABCO-based, DBU-based, guanidinium, imidazolium, phosphonium, pyridinium, and miscellaneous. They have proven indispensable in facilitating reactions like Fischer-indole synthesis, Biginelli, Knoevenagel condensations and many more. Notably, the recyclability of ILs serves as a valuable asset, aiding in the completion of intricate synthetic pathways, multicomponent reactions, and one-pot syntheses, ultimately enhancing yields. This review seeks to guide researchers in selecting suitable ILs for specific chemical reactions, enabling the synthesis of aza- and/ or oxa-heterocycles described in 2022. This advancement holds promising prospects for drug development and other applications within the domain of heterocyclic chemistry.