Dioscorea bulbifera (Family: Dioscoreaceae) also referred to as 'Air potato,' carries significant importance in the traditional medicine of China, West Africa and India. It is a common ingredient in numerous herbals and Ayurvedic formulations used to treat a variety of ailments. The literature review extensively examined the historical usage, phytoconstituents, characterisation of phytoconstituents, and medicinal uses of tubers, leaves, rhizomes and bulbils, with a particular focus on comparing research findings. Among the bioactive constituents, aglycone forms of steroidal saponins such as dioscorine, dioscin, diosbulbins, and diosgenin exhibit significant biological activities. Extracts from different parts of the plant exhibited pharmacological activities like anti‐viral, anti‐malarial, analgesic, antidiabetic, and anticancer. It is necessary to conduct an in‐depth investigation to bridge between the traditional knowledge and scientific evidence. This comprehensive review aims to provide a detailed understanding of the ethnobotany, phytoconstituent, chemical characterization and pharmacological potential of D. bulbifera, highlighting its prospects and challenges for future research and medicinal application.