<p><i>Corydalis yanhusuo</i> W. T. Wang (<i>C. yanhusuo</i>), a traditional Chinese herbal medicine with a long history, is highly esteemed for its medicinal properties. This review, drawing on ethnopharmacological research, elucidates that <i>C. yanhusuo</i> exhibits various efficacies, such as promoting blood circulation, promoting qi, and alleviating pain, after undergoing different processing methods and when combined with other herbs. To date, approximately 160 compounds have been isolated and identified from <i>C. yanhusuo</i>, with 92 of them being alkaloids. Modern pharmacological studies have demonstrated that these alkaloids, through regulating neurotransmitter systems, inflammatory responses, signaling pathways, and other mechanisms, exhibit significant therapeutic effects in various areas, including analgesia, antiepileptic activity, sedation, antidepression, antianxiety, anti-addiction, anti-Alzheimer's disease, antithrombosis, anti-myocardial infarction, anti-cerebral ischemia/reperfusion injury, anti-gastric ulcer, liver protective, antidiabetic, and anticancer activity. Furthermore, pharmacokinetic studies have shown that processing methods and compatibility significantly influence the pharmacological effects of <i>C. yanhusuo</i>. Finally, this review outlines future research directions for <i>C. yanhusuo</i>, aiming to provide a solid foundation for in-depth studies and effective utilization of this herbal resource.</p> Graphical abstract <p></p>