Medicinal plants have been used to treat illness and disease for thousands of years. Bioactive principles present in medicinal plants attribute to the therapeutic efficacy and it can be incorporated into modern medicine systems for the development of newer drug formulation for therapeutic ailments. Even now they are economically important, being used in the pharmaceutical, cosmetic, perfumery, and food industries. Screening of medicinal plants for antimicrobial activities and phytochemicals is important for finding potential new compounds for therapeutic use. In the present review, an attempt has been made to congregate the traditional, phytochemical, and pharmacological studies done on an important medicinal plant Annona muricata. Cyclo hexapeptides, acetogenins, annonaceous acetogenins were the major phytochemical compounds studied from this medicinal plant. The fruit is of economic value and hence cultivated and used widely as edible food. The plant possesses the major pharmacological activities includes Anti-viral activity, Anti-oxidant Activity, Larvicidal activity, Anti-inflammatory activity, Antipediculicidal activity, Anti-bacterial activity, and wound healing. It also has an anti-carcinogenic and cytotoxic effect.