Pterocarpus marsupium, commonly known as Vijayasar, is an important medicinal plant widely used in traditional Indian systems of medicine for the treatment of metabolic and inflammatory disorders. This review summarizes available information on its traditional uses, phytochemical constituents, and pharmacological activities. Phytochemical studies reveal that the plant is rich in flavonoids, stilbenes, tannins, and other phenolic compounds, with epicatechin and pterostilbene identified as major bioactive constituents. Pharmacological investigations have demonstrated antidiabetic, antioxidant, anti-inflammatory, cardioprotective, hepatoprotective, antimicrobial, and wound-healing properties, providing scientific support for its traditional applications. Despite substantial preclinical evidence, clinical studies on P. marsupium remain limited, and issues related to standardization and dosage persist. Further well-designed clinical investigations and development of standardized phytopharmaceutical formulations are necessary to establish its safety and therapeutic efficacy.