Herbal medicine has been studied as an alternate approach to modern medicine as it is more cost-effective and accessible via natural sources. Eclipta alba (E. alba, L.) Hassk. is a weed plant abundantly distributed throughout different regions of the world and contains abundant bioactive compounds used for various skin conditions. In this review, we aimed to gather information from the literature about the extraction, separation, and identification of these bioactive compounds and their potential in skin diseases. Relevant studies published before August 2023 were identified and selected from electronic databases, including Scopus, SciFinder, ScienceDirect, Google Scholar, and Wiley Library, using the following keywords: Eclipta alba, Eclipta prostrata, phytochemicals, extraction, separation, isolation, identification, characterization, pharmacological activity, and skin conditions. Up-to-date extraction, separation, and identification methods of bioactive compounds from E. alba and their skin-related pharmacological activities are discussed in this review. As there are limitations regarding extraction, separation, and identification methods, and in-depth mechanistic and human studies of the skin-related pharmacological activities of bioactive compounds, these gaps are areas for future research to expand our understanding and broaden the potential applications of this medicinal weed plant, including the development of cosmeceutical and skincare products, anti-inflammatory agents, and formulations for dermatological treatments.