Berberis lycium Royle a member of Berberidaceae family is an evergreen shrub native to the Himalayan region, particularly to Nepal. Several phytochemicals including alkaloids, saponins, tannins, vitamins, proteins, carbohydrates, lipids, berberine, berbamine, and sindamine have been extracted from various parts of the plant. The plant has also been shown to contain minerals such as calcium, copper, sodium, manganese, iron, sulphur, zinc, potassium, lead, and phosphorus. Owing to the presence of such biologically active chemicals, the extracts of the plant show several pharmacological activities like hyperlipidemic, hypoglycemic, hepatoprotective, anticarcinogenic, and antipyretic. Moreover, the plant is being traditionally used to treat diarrhoea, intestinal colic, jaundice, piles, internal wounds, ophthalmia, rheumatism, and diabetes. Because of its important therapeutic characteristics, the plant is under risk of over-exploitation and other forms of anthropogenic pressure. In light of several recent findings and the prospects for future study, this review presents an inclusive account of its phytochemical constituents, biological activity, traditional use and conservation and management concerns.