Purple tea, renowned for its anthocyanin content and distinctive purple hue, has gained prominence. The anthocyanin content in purple tea can exceed three times that of traditional green-leaf tea. Purple tea harbors various anthocyanins, implicating intricate pathways of biosynthesis and transcriptional regulation. Concurrently, owing to its distinctive chemical composition, the processing of purple tea may be constrained, potentially influencing the sensory attributes and flavor profile of the tea. The richness of anthocyanins in purple tea has yielded potential health benefits, including antioxidative and anti-cancer properties, rendering purple tea a sought-after commodity in the tea market. However, current research on purple tea remains incomplete, including indistinct networks of anthocyanin biosynthesis and regulatory mechanisms, incomplete chemical characterization, and a need for comprehensive investigations into its biological activities. The limited research foundation has greatly reduced the popularity and consumption of purple tea. This paper aims to provide an overview of recent advancements in the biosynthesis and regulation of anthocyanins, as well as the chemical compositions, processing, and health benefits of purple tea. This review will provide the groundwork for future efforts in the selection and innovation of purple tea germplasm, purple tea processing, and the expansion of the market for purple tea consumption.