Natural products like terpenoids and alkaloids that originate from plants are widely distributed in nature. In neurology, these phytoconstituents have great potential as therapeutic agents, especially when it concerns managing neurological conditions like epilepsy, Parkinson’s disease, Alzheimer’s disease and other neurodegenerative conditions. These compounds exhibit neuroprotective and other beneficial effects, making them valuable potential drug candidates. Terpenoids like eugenol, linalool, phytol and pinene have shown potential in modulation of inflammation and oxidative stress that are known as the major contributors to neurodegenerative disease progression. Many preclinical studies have shown potential of terpenoids in improving cognition, memory and mood. Traditional medicine has utilized alkaloids to treat a variety of diseases including neurological conditions. A number of alkaloids are also being studied for their neuroprotective potential such as ergotamine and galantamine, which are used therapeutically to treat postpartum haemorrhage and Alzheimer’s disease, respectively. It can act as neuroprotective agents by increasing the neurotransmitter GABA, inhibiting acetylcholinesterase (AChE) enzyme and promoting cellular autophagy. Alkaloids and terpenoids can reduce inflammation by suppression of pro-inflammatory cytokines and alteration of inflammatory pathways. Moreover, they are known to modify the signalling route of the brain-derived neurotropic factor (BNDF) which is crucial for neuronal survival, neurogenesis and plasticity. The purpose of this chapter is to explore the role of terpenoids and alkaloids as phytochemicals in the investigation of various neurological disorders, evaluate their efficacy and look into their importance in preclinical research for the development of novel medications. Terpenoids and alkaloids present significant opportunities for the development of new therapeutic approaches in neurology, especially for neurodegenerative diseases because of their various modes of action and possible advantages.