Hedychium coronarium J. Koenig (commonly known as Gulbakwali or White Ginger Lily) is a perennial herb of the Zingiberaceae family, valued for its ethnomedicinal and pharmacological importance. Traditionally employed as a febrifuge, eye tonic, anti-rheumatic, and in the management of asthma, arthritis, and diabetes, the plant has gained increasing attention in modern phytopharmacology. Phytochemical investigations reveal a rich diversity of metabolites, including labdane diterpenes (e.g., coronarin D), flavonoids, glycosides, saponins, and essential oils dominated by cineole, limonene, and linalool, which contribute to its antioxidant, antimicrobial, anticancer, anti-inflammatory, and antidiabetic effects. Recent experimental studies further highlight the therapeutic promise of its rhizome, leaf, and flower extracts against oxidative stress, microbial infections, metabolic disorders, and cataractogenesis. However, overexploitation, habitat destruction, and limited natural regeneration have led to population decline, raising urgent conservation concerns. Sustainable cultivation strategies, chemotypic mapping, and advanced pharmacological investigations are essential to unlock the plant’s full therapeutic potential. This review consolidates ethnobotanical knowledge, phytochemical data, and pharmacological evidence on H. coronarium, while identifying gaps in in vivo validation, standardization, and conservation practices. Integrating traditional wisdom with modern drug discovery approaches may establish this species as a valuable source of novel phytopharmaceuticals and nutraceuticals.