Aloe vera is a perennial, drought-resisting, succulent plant belonging to the Asphodelaceae family which, historically has been used for a variety of medicinal purposes. It has a vast traditional role in indigenious system of medicine like ayurveda, siddha, unani and homoeopathy. Clinical evaluations have revealed that the pharmacological active ingredients are concentrated in both the gel and rind of the aloe vera leaves. Bioactive compounds from aloe vera are very effective in various treatments, such as burns, allergic reactions, rheumatoid arthritis, rheumatic fever, acid indigestion, ulcers, diabetes, skin diseases, dysentry, diarrohoea, piles and inflammatory conditions of the digestive system and other internal organs, including the stomach, small intestine, liver, kidney, and pancreas. The active ingredients have been shown to have analgesic, anti-inflammatory, antioxidant and anticancer agent. The present review is therefore, an effort to give a detailed survey of the literature on its traditional, phytochemical and pharmacological properties.