Polysaccharides are essential macromolecules which almost exist in all living forms, and have important biological functions, they are getting more attention because they exhibit a wide range of biological and pharmacological activities, such as anti-tumour, immunomodulatory, antimicrobial, antioxidant, anticoagulant, antidiabetic, antiviral, and hypoglycemia activities, making them one of the most promising candidates in biomedical and pharmaceutical fields. Polysaccharides can be obtained from many different sources, such as plants, microorganisms, algae, and animals. Due to their physicochemical properties, they are susceptible to physical and chemical modifications leading to enhanced properties, which is the basic concept for their diverse applications in biomedical and pharmaceutical fields. In this review, we will give insight into the most recent updated applications of polysaccharides and their potentialities as alternatives for traditional and conventional therapies. Challenges and limitations for polysaccharides in pharmaceutical utilities are discussed as well.