Alzheimer’s disease (AD) is a progressive neurodegenerative disorder primarily associated with aging. This devastating condition is characterized by significant memory loss, abnormal behavior, personality shifts, and a decline in cognitive function. Despite extensive research, no cure for Alzheimer’s disease currently exists, and available treatment options have shown limited effectiveness. Developing therapeutic interventions to slow down or prevent the onset and progression of Alzheimer’s disease is crucial to address the growing burden of this condition. Ayurvedic medicinal herbs have emerged as a promising avenue for drug research, with numerous compounds derived from these herbs currently undergoing clinical trials. Scientific studies have explored the potential application of various Ayurvedic medicinal plants and their derivatives in the treatment of Alzheimer’s disease. Although the precise mechanisms of action remain largely unknown, extensive phytochemical investigations have identified a wide range of beneficial compounds within these plants. These compounds include lignans, flavonoids, tannins, polyphenols, triterpenes, sterols, and alkaloids, each exhibiting diverse pharmacological activities. These activities encompass anti-inflammatory, anti-amyloidogenic, anticholinesterase, hypolipidemic, and antioxidant effects. This review highlights the phytochemistry and ethnomedicinal applications of various plants, along with their bioactive compounds. It underscores the potential of Ayurveda, one of the world’s oldest holistic healing systems, in identifying effective therapeutic interventions for neurodegenerative disorders like Alzheimer’s disease. The promising pharmacological activities of Ayurvedic medicinal herbs and their constituents suggest their potential as novel treatments for Alzheimer’s disease. These findings offer hope for addressing the challenges posed by this debilitating condition. Graphical Abstract