Xylocarpus moluccensis is an important mangrove plant with a wide range of biological activities and a significant ecological role. This plant has been used traditionally as a medicinal herb in various countries for a long time. Beyond its empirical use, numerous research studies have confirmed the medicinal potential of X. moluccensis, both in the form of extracts and through the exploration of its phytochemical compounds. A variety of bioactive phytochemicals, particularly those belonging to the terpenoid class, have been identified in this plant. The limonoid-type terpenoids have been primarily identified in the plant’s seeds. These phytochemicals exhibit activities, such as antioxidant, anti-inflammatory, antibacterial, antiviral, and antitumor properties. In addition, extracts derived from various parts of the plant have demonstrated promising activity in treating conditions, such as diarrhea, oxidative stress, diabetes, cancer, inflammation, dyslipidemia, and bacterial infections, and they also show potential for managing neurological conditions. A standardized extract from the fruit has already been developed, which shows potential in addressing dyslipidemia, hyperglycemia, and inflammation. The underlying mechanisms behind the bioactivity of this plant have been reported, whether it involves isolated single compounds or extracts containing multiple compounds. Given the diverse phytochemical components and their bioactivity, X. moluccensis presents significant potential for further development as a source of raw materials for pharmaceutical drugs. Future research could focus on increasing the production of standardized extracts from X. moluccensis and further investigating modifications or the synthesis of identified phytochemical compounds. This could help expand the therapeutic uses of this plant in modern medicine.