<p><i>Clitoria ternatea</i> (butterfly pea), a perennial leguminous plant, has garnered significant attention due to its diverse phytochemical composition, nutritional richness, and extensive pharmacological properties. Traditionally employed in Ayurveda and folk medicine, this plant is increasingly recognized for its applications in functional foods, nutraceuticals, and as a natural colorant. The flowers are particularly valued for their vibrant blue pigment, primarily anthocyanins (notably ternatins), which exhibit pH-sensitive colour changes. Beyond pigments, <i>C. ternatea</i> contains substantial levels of proteins, minerals, flavonoids, polyphenols, alkaloids, and essential fatty acids, contributing to antioxidant, anti-inflammatory, antidiabetic, anticancer, neuroprotective, anti-arthritic, and antimicrobial activities. Bioactive compounds from different plant parts have been shown to modulate glycemic response, inhibit cholesterol oxidation, enhance cognitive function, promote wound healing, and suppress tumour growth. Although extensive research has focused on the floral components, investigations into the leaves, seeds, and roots remain limited. This review provides a comprehensive overview of the botanical characteristics, cultivation practices, and ethnobotanical significance of <i>C. ternatea</i>, alongside a detailed analysis of its chemical composition. Furthermore, it highlights the functional, therapeutic, and commercial potential of <i>C. ternatea</i> as a sustainable bioresource for the food, pharmaceutical, and biomedical industries, emphasizing its role in advancing natural, health-promoting, and functional product development.</p>