AlUla oasis in northwestern Saudi Arabia is a historic and cultural landmark known for its unique floristic diversity, rich cultural heritage, and environmental significance. For thousands of years, it has served as a critical hub along the ancient Incense Road, linking civilizations, and supporting thriving ecosystems. This review assesses AlUla’s floristic composition and habitat diversity, highlighting its distinctive sandstone mountains, volcanic formations, and lush oases that support an array of plant and animal species, some endangered. Traditional agricultural practices, such as date palm cultivation and ancient qanat irrigation, reveal the resourcefulness of its inhabitants and underscore the oasis’s ecological importance. Our analysis identifies 58 plant species across 30 families, primarily in desert ecosystems, with Fabaceae, Asteraceae, and Poaceae as the most represented families. Conservation initiatives by the Royal Commission for AlUla (RCU) aim to balance the development of sustainable tourism and agriculture with biodiversity preservation. By comparing AlUla’s ecosystems to similar arid regions, this review emphasizes the need for continued conservation and sustainable land use to protect this unique desert oasis, fostering a balance between cultural preservation and environmental stewardship.