The rising preference for natural and plant-based products has led to significant growth in the use of herbal cosmetics in the global personal care industry. Herbal cosmetics incorporate botanicals rich in bioactive compounds that support skin and hair health while minimizing adverse effects commonly associated with synthetic agents. This review provides an extensive overview of the origins, classification, preparation methods, and therapeutic importance of herbs used in cosmetic formulations. A wide range of medicinal plants—including Aloe vera, Azadirachta indica (neem), Curcuma longa (turmeric), Lawsonia inermis (henna), Camellia sinensis (green tea), Cocos nucifera (coconut), Acacia concinna (shikakai), Prunus amygdalus (almond), and Santalum album (sandalwood)—are identified for their moisturizing, antioxidant, anti-inflammatory, antimicrobial, UV-protective, and rejuvenating properties. These herbs are widely used in creams, lotions, hair oils, shampoos, conditioners, face masks, and other cosmetic preparations. By supplying essential nutrients, regulating sebum production, promoting collagen synthesis, and protecting against environmental damage, herbal ingredients play a crucial role in maintaining skin integrity and supporting healthy hair growth. The review also highlights the importance of quality control, standardization, and safety evaluation to ensure the effectiveness and long-term stability of herbal products. As demand for safe, eco-friendly, and sustainable cosmetics continues to rise, herbal formulations represent a promising and rapidly expanding area in modern cosmetology.