In the field of intellectual property rights (IPR), the incorporation of smart agricultural technology into the production of medicinal plants brings both new potential and difficulties. Medicinal plant farming is made more efficient, sustainable, and high-quality by smart agriculture, which uses biotechnology, blockchain, the Internet of Things, and artificial intelligence (AI). These developments, however, bring up moral and legal questions about fair benefit-sharing, ownership, and innovation protection. With an emphasis on patents, plant variety protection, and the preservation of traditional knowledge, this article examines the intellectual property rights (IPR) environment in smart agriculture for medicinal plants. Strong legal frameworks are necessary for the commercialization of AI-driven farming methods and genetically modified medicinal crops to protect inventors’ rights and guarantee accessibility for farmers and indigenous people. The Convention on Biological Diversity (CBD) and the Trade-Related Aspects of Intellectual Property Rights (TRIPS) are two important international accords that define the legal limits of IPR in smart agriculture. Additionally, new technologies like blockchain can provide traceability of plant genetic resources and transparency in patent administration. This study emphasizes the necessity of well-balanced IPR laws that support innovation while preserving biodiversity and traditional knowledge. In the digital age, strengthening regulatory frameworks may promote equal access and technical breakthroughs, guaranteeing the long-term growth of medical plant cultivation.