Ayurveda, the science of life, deals with the holistic view of healthy living. It covers various physiology and pathology of diseases and their therapies. Since ancient times, several diseases have been treated by administration of plant extracts based on traditional medicine. Investigation of traditionally used medicinal plants is thus valuable on two levels, firstly, as a source of potential chemotherapeutic drugs, and secondly, as a measure of safety for the continued use of medicinal plants. The rhizomes of Cyperus rotundus which are used as traditional folk medicines for the treatment of stomach, bowel disorders and inflammatory diseases. Cyperus rotundus contains essential oils, terpenes, flavonoids, b-sitosterol, and ascorbic acid. The main terpenes in Cyperus rotundus are cyperenes, which include sesquiterpene hydrocarbons. This paper explains the evidence-based information regarding the pharmacological activity of this plant. It has many ethnobotanical uses and is medicinally used in the traditional Ayurvedic system.