Oyamel forest, Abies religiosa (Kunth) Schltdl. et Cham., is a high-mountain ecosystem that contains abundant biodiversity, contributes to supporting traditional medicine, and represents a reservoir of medicinal plants. Despite this medicinal relevance, the potential of the flora of the Mexican Oyamel forest from Santuario del Agua Presa Corral de Piedra (SAPCP), Mexico, has been scarcely studied. This review focused on identifying the flora of the SAPCP which has been reported as medicinal resource in the literature through the recovery of ethnomedicinal uses and their proven pharmacological effects. In addition, phytochemical reports of the SAPCP medicinal flora and their pharmacological activities were integrated and analyzed to estimate their medicinal potential. The results showed that the SAPCP forest represents an important source of medicinal plants, with 39% of the total species reporting at least one ethnomedicinal use belonging to different taxonomic families, but mainly included Asteraceae, Lamiaceae, Rosaceae, and Solanaceae. The most commonly observed ethnomedicinal uses among all the species were against inflammation, infections, diarrhea, and diabetes, while antioxidant, antidiabetic, and anti-inflammatory effects were predominantly proven as pharmacological effects. The phytochemical results revealed a great diversity of secondary metabolites, although flavonoids, phenolic acids, and triterpenes were observed in a major number of species, many of which have been proven to exert anti-inflammatory, antidiabetic, and antibacterial effects through several action mechanisms. In conclusion, these results highlight the importance of sustainable management and the conservation of forest species, as they provide a reservoir of medicinal species that produce bioactive metabolites.