Ursodeoxycholic acid is a choleretic. Ursodeoxycholic acid responsible for raising bile production in body and ultimately bile is necessary for the breakdown of lipids. Additionally, bile is responsible for removal body's toxin. In addition to its choleretic effect, ursodeoxycholic acid also has anti-inflammatory and antioxidant properties. This characteristic may help in preventing liver injury and promoting repair. Additionally, ursodeoxycholic acid has been demonstrated to have cytoprotective properties, which implies that it may aid in preventing the death of liver cells. People who have liver problems that cause bile to build up may benefit from ursodeoxycholic acid's ability to increase bile flow. It helps the liver by various complementary mechanisms. It helps the liver by its cytoprotective, Immunomodulatory, and Anti apoptotic. A non-toxic, hydrophilic bile acid called ursodeoxycholic acid (ursodiol) is used mostly to treat cholestatic liver diseases. It improves the biochemical parameters in various diseases and widely used in treatment of Primary biliary cirrhosis, Primary sclerosing cholangitis, Intrahepatic cholestasis of pregnancy, Cystic fibrosis, but furthermore studies are need to be done in clinical uses. The only medication authorized for use as the first-line treatment for PBC is ursodeoxycholic acid (UCDA). Overall, ursodeoxycholic acid is a potent molecule with a wide range of beneficial effects on the liver. The ability of ursodeoxycholic acid to treat various liver conditions, including alcoholic liver disease and hepatitis C, is currently being researched. This review summarizes the current understanding of the ursodeoxycholic acid mechanisms of action and offers data from clinical studies on its application to chronic liver disorders.