Numerous researchers have been motivated to investigate new plant sources as a result of the continued advancement of functional foods and herbal medicines. The rambutan fruit (Nephelium lappaceum L.) with its significant nutritional and bioactive compositions offers therapeutic properties such as anticancer, antiallergic, antiobesity, antidiabetic, antimicrobial, antihypercholesterolemic, and antihyperglycemic. Rambutan is high in antioxidants, dietary fibers, and vitamins and minerals. Its parts including fruit peel, pulp, and seed are a great source of bioactive compounds. Rambutan fruit extracts have been found to have cardioprotective and hepatoprotective properties. This review provides an insight into the nutritional as well as therapeutic value, health potential, and utilization of rambutan fruit along with its nonedible parts (seeds and peels). Advanced research and phytochemical screening would also encourage the rambutan fruit as a viable choice for the preparation of medications and functional foods. However, it is necessary to further analyze the functional aspects and nutritional potential of this fruit along with the therapeutic mechanisms and to improve its industrial use as a nutraceutical and functional food product.