<p>Members of the Solanaceae family, also known as peppers, widely celebrate the culinary and medicinal significance of <i>Capsicum</i> spp. These peppers, which range from sweet bell to fiery chili peppers, are rich in bioactive compounds such as capsaicin, carotenoids, flavonoids, and essential vitamins (A, C, and E). This review explores the diverse nutritional profile of <i>Capsicum</i> spp. and their therapeutic potential, particularly in managing chronic conditions such as diabetes, cardiovascular diseases, and cancer. This study uses a lot of data from different databases from 2015 to 2025 to show how <i>Capsicum</i> spp. and their main phytochemicals can help fight cancer, inflammation, bacteria, and other harmful microbes. Important discoveries show that capsaicin, a bioactive alkaloid, controls metabolism, boosts immune function, and lowers oxidative stress, showing that it can help prevent diseases. Additionally, the nutritional richness of <i>Capsicum</i> spp., including their vitamins and minerals, contributes to overall health and vitality. The antimicrobial potential of these peppers against bacterial and fungal pathogens further enhances their appeal in both medicinal and food applications. The review stresses the usefulness of bioactive compounds derived from <i>Capsicum</i> spp. in functional foods and medicine. These compounds not only promise advancements in chronic disease management but also open avenues for innovative applications in these two fields. Future research aimed at optimizing the use of pepper-derived phytochemicals can help harness their full health-enhancing potential.</p> Graphical Abstract <p></p>