Abstract: Litsea pungens Hemsl., a type of deciduous or evergreen small tree or shrub, has significant value in fragrance, flavoring, and medicinal applications. However, the industry faces challenges such as low product technological content, limited processing models, and insufficient utilization in high-value processing. This article systematically reviews the volatile aroma compounds found in Litsea pungens Hemsl., including sesquiterpenes, limonene, citral, and linalool, as well as non-volatile constituents such as alkaloids, fatty acids, resin, and amides. It also explores its biological activities, which include antimicrobial, antioxidant, anti-inflammatory, and anti-arthritic properties. The article elucidates the sensory similarities between Litsea pungens Hemsl. and Sichuan pepper or black pepper, identifying amide compounds and eugenol as the chemical constituents responsible for the pungent sensation. It reviews research progress in its applications such as food quality preservation, salt reduction in dishes, enhancement of tobacco flavor, weed and pest control, and auxiliary dental treatments. Therefore, strengthening fundamental research on Litsea pungens Hemsl. and expediting the translation of related scientific achievements carry significant practical implications for advancing the industry chain and augmenting economic benefits.