Plants have played an important role over the centuries in providing products that have been used to help combat ailments and diseases. Many products originating from fresh, dried-plant materials, or extracts are utilized as community remedies in traditional practices or even in modern medicine. The Annonaceae family contains different types of bioactive chemical properties, such as alkaloids, acetogenins, flavonoids, terpenes, and essential oil, meaning the plants in this family are potential therapeutic agents. Belonging to the Annonaceae family, Annona muricata Linn. has recently attracted the attention of scientists for its medicinal value. It has been utilized as a medicinal remedy since ancient times to treat and improve various diseases, for example, diabetes mellitus, hypertension, cancer, and bacterial infections. This review, therefore, highlights the important characteristic and therapeutic effect of A. muricata along with future perspectives on its hypoglycemic effect. The most-common name is soursop, referring to its sour and sweet flavors, while in Malaysia, this tree is commonly called ‘durian belanda’. Furthermore, A. muricata contains a high content of phenolic compounds in the roots and leaves. In vitro and in vivo studies have shown that A. muricata has the pharmacological effects of anti-cancer, anti-microbial, antioxidant, anti-ulcer, anti-diabetic, anti-hypertensive, and wound healing. With regard to its anti-diabetic effect, mechanisms of inhibiting glucose absorption via α-glucosidase and α-amylase activity inhibition, increasing glucose tolerance and glucose uptake by peripheral tissues, and stimulating insulin release or acting like insulin were deeply discussed. There is still a significant research gap, and future studies are required to conduct detailed investigations and gain a better molecular understanding of A. muricata’s anti-diabetic potential, especially by using the metabolomics approach.