New drug formulation and development is costly and can take 10–15 years. The drug repurposing approach focuses on re-evaluating known drugs previously approved for one medical condition to explore their potential effectiveness in treating different diseases or conditions for which they were not initially intended. This approach has many significant aspects, such as cost and time efficiency, safety, expanded treatment options, rare diseases, and accelerated drug development. Conversely, there are many challenges to re-evaluating the drugs, such as regulatory challenges, financial issues, clinical trials, intellectual property, and demands for market analysis. It minimizes drug failure, maximizes the drug’s therapeutic potential, and enhances the success rate. The study also shows various experimental and computational hypothesis-based strategies that are being used in the drug repurposing approaches. The study enlists various repurposed drugs of central nervous system, respiratory system, gastrointestinal system, and other diseases for newer indications. It is observed that the drug repurposing approach fastens the drug development process for several diseases. Hence, drug repurposing approach could be considered an alternative approach to traditional drug discovery systems.