Balanites aegyptiaca is an evergreen, woody, true xerophytic tree of tremendous medicinal importance. It belongs to the family Balanitaceae and is distributed throughout the drier parts of India. B. aegyptiaca has been used in a variety of folk medicines in India and Asia. Various parts of the plant are used in Ayurvedic and other folk medicines for the treatment of different ailments such as syphilis, jaundice, liver and spleen problems, epilepsy, yellow fever and the plant also has insecticidal, antihelminthic, antifeedant, molluscicidal and contraceptive activities. Research has been carried out using different in vitro and in vivo techniques of biological evaluation to support most of these claims. This review presents the traditional uses, phytochemistry and pharmacological properties of this medicinal plant.