Phenoxazines have gained enormous interest because of their diverse applications in both material science and chemotherapy. They exhibit numerous biological activities, ranging from anti‐malarial, anticancer, antiviral, antidiabetic, anti‐Alzheimer, antioxidant, anti‐inflammatory, to antibiotic and many more. Actinomycin D, for instance, which embodies a phenoxazine scaffold, displays both antibiotic and anticancer property. Phenoxaxines have also found usefulness in organic light‐emitting diodes, fluorescent probes and dye‐sensitized solar cells. Over the years, various research groups have strived for several structural modifications targeting new derivatives of phenoxazines with improved properties. This present review highlights the progress, challenges and prospects in medicinal and material applications of phenoxazine moiety to provide greater insight into the development of future derivatives with improved properties.