A traditional medicinal plant in Ayurveda and Traditional Chinese Medicine, Centella asiatica, often known as Gotu kola, has made a comeback as a significant phytotherapeutic agent in contemporary pharmacology. Numerous biological activities, such as neuroprotective, wound-healing, antioxidant, anti-inflammatory, antidiabetic, and cardioprotective properties, are supported by its rich composition of triterpenoids, especially asiaticoside, madecassoside, and Asiatic acid. Its capacity to alter several molecular pathways, including NF-κB, COX-2, and MAPK, has been demonstrated in recent studies to support tissue regeneration and cellular defence. C. asiatica has been successfully added to innovative drug delivery systems like liposomes, Nano emulsions, phytosomes, and hydrogels to improve bioavailability and targeted efficacy thanks to developments in nanotechnology and formulation science. Furthermore, both in vitro and clinical studies are being conducted to investigate its potential use in metabolic syndromes, neurological diseases, and dermatology. Despite encouraging results, issues with large-scale clinical validation, standardisation, and dosage optimization still exist. With a focus on its phytochemical variety, pharmacological mechanisms, novel formulations, clinical potential, and future prospects in evidence-based Phytomedicine, this study critically analyses Centella asiatica’s changing significance in the contemporary therapeutic environment.