In recent decades, there has been growing evidence of the significant potential of plant-derived functional foods and beverages for improving human health. Pulicaria incisa is a desert plant that has been used for many years as a tea substitute, and its extracts are used in traditional medicine in Asia and Africa. This review aims to provide an up-to-date summary of the food applications, traditional uses, biological and pharmacological properties, and chemical constituents of various P. incisa extracts. A variety of biological effects of the plant have been demonstrated in vitro and in vivo, including beneficial effects on brain cells and anti-cancerous, anti-inflammatory, anti-oxidant, cytotoxic, hypoglycemic, hypocholesterolemic, anti-microbial and anti-fungal activities. This broad spectrum of beneficial activities suggests the potential uses of P. incisa as an additive to dry food products or functional beverages.