Oxazole, a five‐membered cyclic ring containing oxygen and nitrogen, displays diverse interactions and structural variations, enhancing its potential applications across various domains. Oxazole derivatives exhibit diverse pharmacological activities, including antidiabetic, anticonvulsant, anticancer, phosphodiesterase inhibition, antiprotozoal, and antibacterial effects, making them appealing to medicinal chemists. Their presence in naturally occurring pharmacologically active substances as well as synthetic medicines underscores their therapeutic potential. This review encompasses recent advancements in the biological activities of oxazole derivatives during the period of 2018–2023. The discussed activities include antitumor, central nervous system (CNS) modulation, antidiabetic, anti‐Alzheimer, antibacterial, and enzyme inhibitory effects. The review highlights the mechanisms of action of these compounds in various diseases, the most potent compounds along with their respective IC50/MIC (inhibitory concentration/minimum inhibitory concentration) values, and discusses the models utilized for quantifying their activity. Currently, there are eight FDA‐approved drugs bearing oxazole scaffolds available in the market. Analysis of the literature reveals that the antitumor activity of oxazole derivatives is particularly noteworthy among their various activities. The incorporation of phenyl, methoxyphenyl, or halogen‐substituted phenyl moieties significantly enhances therapeutic activities compared to reference drugs. The substitution flexibility at three positions of oxazole derivatives contributes to their spectrum of pharmacological activities.