Acorus calamus Linn., commonly known as Vacha, is an important medicinal plant belonging to the family Araceae. It has been extensively used in classical Ayurvedic medicine for the management of disorders related to the nervous system, digestive system, respiratory system, and speech impairment. Traditionally, Vacha is indicated in conditions such as Agnimandya, Grahani, Apasmara, Unmada, Kasa, Shwasa, Medhya disorders, and Vata-Kapha predominant diseases. Phytochemical investigations of Acorus calamus have revealed the presence of phenylpropanoids (α-asarone and β-asarone), essential oils, terpenoids, flavonoids, tannins, glycosides, saponins, and carbohydrates. Several bioactive compounds have been isolated and evaluated for their medicinal potential. Pharmacological studies have demonstrated that Acorus calamus possesses neuroprotective, memory-enhancing, anticonvulsant, anti-inflammatory, antioxidant, antimicrobial, anti-ulcer, digestive stimulant, and anxiolytic activities. The findings of various experimental and pharmacological studies support the traditional claims of Vacha described in Ayurvedic literature. The present review aims to discuss the classical Ayurvedic descriptions, chemical constituents, pharmacological activities, and therapeutic significance of Acorus calamus Linn., highlighting its importance as a potential medicinal drug.