The main objective of this mini-review was to synthesize recent data about the phytochemical composition, the nutritional properties, and the biological and pharmacological activities of a now cosmopolitan genus, Physalis (Solanaceae), being in the focus of intensive research over the last two decades. Six Physalis species with nutritional and pharmacological promise are considered in particular – P. peruviana L., P. philadelphica Lam., P. ixocarpa Brot. ex Horm., P. angulata L., P. pubescens L., and P. alkekengi L. Summarized contemporary data on the metabolite profile and the biological activities of Physalis species support their century-long use in traditional medicine and human nutrition. The fruit represent a rich source of minerals, vitamins, fibers, carotenoids, proteins, fructose, sucrose esters, pectins, flavonoids, polyphenols, polyunsaturated fatty acids, phytosterols and many other beneficial nutrients. Individual phytochemicals and complex fractions isolated from Physalis plants demonstrate various biological and pharmacological activities, the most promising of which include antimicrobial, antioxidant, anti-diabetic, hepato-renoprotective, anti-cancer, anti-inflammatory, immunomodulatory and others. Most of these activities are associated with the presence of flavonoids, phenylpropanoids, alkaloids, physalins, withanolides, and other bioactive compounds. The accumulated data disclose the potential of Physalis spp. as highly functional foods, as profitable crops for many regions over the world, and as sources of valuable secondary metabolites for phytopharmacy, novel medicine and cosmetics. Information provided by this review is also important for a more intensive promotion of Physalis species in Bulgaria and for future studies on their composition and benefits.