Lotus is a freshwater aquatic plant widely recognized for its cultural and religious significance and belongs to the Nelumbonaceae family. Each part of the plant-including leaves, stems, flowers, seeds, plumules, stamens, receptacles, and rhizome nodes-serves a unique role in traditional, nutritional, medicinal, and functional applications. Among these, lotus seeds possess the highest therapeutic potential, having been traditionally used to treat insomnia, inflammation, and neurological conditions. The seeds of the lotus plant have a superior nutritional profile, containing carbohydrates, proteins, and fats. They are also rich in vitamin C and essential minerals such as iron, calcium, sodium, and potassium. Additionally, lotus seeds contain a high concentration of bioactive compounds, primarily alkaloids like neferine, liensinine, and isoliensinine, along with phenolic acids, glycosides, and flavonoids. These compounds have been extracted using various methods, including maceration, percolation, supercritical fluid extraction, ultrasonication, and microwave-assisted extraction. The bioactive compounds present in lotus seeds have demonstrated diverse pharmacological activities such as anti-obesity, antioxidant, anti-inflammatory, cardioprotective, antiviral, and anticancer effects. Due to these therapeutic properties, lotus seeds are increasingly utilized across industries, including cosmetics, bioplastics, sustainable agriculture, and biofuels. Furthermore, the growing demand for lotus seeds as a functional food is contributing to their rapid market expansion. Their production and use support sustainability and circular economy principles by minimizing waste, efficiently utilizing natural resources, and delivering health benefits without adverse environmental impacts.