Lumnitzera racemosa Willd. is a mangrove plant with a broad distribution, spanning from the coastal regions of East Africa to Southeast Asia, New Guinea, and Australia. Various parts of this plant have been traditionally used to treat a wide range of ailments, including infertility, asthma, diabetes, snake bites, and skin conditions, such as herpes, pruritus, scabies, sores, leprosy, and thrush. The therapeutic properties of L. racemosa are believed to be due to its diverse bioactive compounds, including flavonoids, lignans, phenolics, sulfur-containing compounds, tannins, terpenoids, and glycosides. A literature review has identified 101 distinct compounds isolated from this plant, many of which have demonstrated significant biological activities, such as antimicrobial, antioxidant, antidiabetic, cytotoxic, anti-inflammatory, and antihypertensive effects. In addition to these, extracts from L. racemosa exhibit anti-allergic, anti-angiogenic, anticoagulant, antimalarial, and larvicidal properties. This review highlights the traditional uses of the plant, the bioactive compounds isolated from it, and their pharmacological properties.