Salvia sclarea L. (clary sage) is widely used in Algerian traditional medicine, yet its essential oil from the Edough Mountains (northeastern Algeria) remains poorly characterized. An ethnobotanical survey among 85 informants revealed high recognition (RFC = 0.918) and versatility (UV = 1.671), with predominant uses against digestive, nervous, and gynecological disorders (ICF up to 0.88). Hydrodistillation of the aerial parts yielded 1.90% (w/w) of a pale‐yellow essential oil dominated by oxygenated monoterpenes (68.95%), mainly linalyl anthranilate (47.75%), and linalool (16.24%). The oil showed potent antimicrobial activity (MIC 15.32–1000 µg/mL), strong antibiofilm effects (up to 76.02% inhibition), remarkable antioxidant capacity (DPPH EC ₅₀ = 40.38 µg/mL), anti‐inflammatory activity (EC ₅₀ = 291.10 µg/mL), and interesting inhibitory effects on acetylcholinesterase (EC ₅₀ = 64.40 µg/mL) and α‐amylase (EC ₅₀ = 69.49 µg/mL). These findings suggest that the Algerian chemotype of S. sclarea may represent a promising source of bioactive natural compounds. Molecular docking and 100 ns molecular dynamics simulations elucidated the binding modes and stability of the major constituents in the enzyme active sites. This study validates traditional knowledge and positions the oil as a promising natural resource for managing oxidative stress‐related and microbial disorders.