This review provides an overview of *Dioscorea opposita* Thunb., commonly known as the Chinese yam, a plant species with a long history of use in traditional Chinese medicine and as a food source. The Chinese yam, particularly the Huai Shanyao cultivar, is highly regarded for its nutritional and medicinal properties. The review covers the historical background, physicochemical composition, and various applications of the Chinese yam as both a food and a medicine. Modern scientific research is confirming the health benefits of the Chinese yam, including its potential to combat diabetes, oxidative stress, inflammation, immunomodulation, hyperlipidemia, hypertension, and cancer. The review also discusses the chemical components of the Chinese yam, such as starch, polysaccharides, proteins, batatasins, and other small molecular constituents, and their biological activities. Additionally, it explores the use of the Chinese yam in combination with other traditional Chinese medicines and its applications in treating various diseases. The review concludes by highlighting the promising future research prospects for the Chinese yam, emphasizing its potential as a nutraceutical.This review provides an overview of *Dioscorea opposita* Thunb., commonly known as the Chinese yam, a plant species with a long history of use in traditional Chinese medicine and as a food source. The Chinese yam, particularly the Huai Shanyao cultivar, is highly regarded for its nutritional and medicinal properties. The review covers the historical background, physicochemical composition, and various applications of the Chinese yam as both a food and a medicine. Modern scientific research is confirming the health benefits of the Chinese yam, including its potential to combat diabetes, oxidative stress, inflammation, immunomodulation, hyperlipidemia, hypertension, and cancer. The review also discusses the chemical components of the Chinese yam, such as starch, polysaccharides, proteins, batatasins, and other small molecular constituents, and their biological activities. Additionally, it explores the use of the Chinese yam in combination with other traditional Chinese medicines and its applications in treating various diseases. The review concludes by highlighting the promising future research prospects for the Chinese yam, emphasizing its potential as a nutraceutical.