Dance, as an expressive art, has increasingly been recognised for its significant impact on physical and mental health. This comprehensive literature review delves into the multifaceted effects of dancing across various populations and settings, emphasising its implementation in Dance Movement Therapy (DMT) and Dance for Health (DfH) programmes. Central themes explored include: (1) the role of dance in enhancing neurological and cognitive functions through DMT; (2) its therapeutic potential in mental health and emotional well-being, primarily through DMT; and (3) the physical health benefits realised in DfH settings, encompassing aspects like cardiovascular health, muscular strength, flexibility, balance, and coordination. In this study, forty-eight (48) peer-reviewed studies from prominent databases, spanning the period from 2020 to 2023 were scrutinised. The analysis reveals the extensive applications of dance, from rehabilitative therapy for neurodegenerative disorders to a catalyst for psychological resilience and social integration. Crucially, the review identifies under-researched areas such as the long-term effects of dance therapy, its impacts on specific demographic groups, and the integration of technology in dance practices. Additionally, the findings highlight the diverse nature of the health impacts of dance within DMT and DfH, underscoring both the empirical evidence of its benefits and the challenges, including accessibility and cultural adaptability. This review thus acts both as a retrospective examination and a forward-looking guide, offering insights for healthcare professionals, researchers, and policymakers into the complex relationship between dance and overall human health.