This review provides an overview of the physiological dynamics and regulation of essential oil production in plants. Essential oils are highly integrated with the overall physiology of the plant and depend on the metabolic state and developmental differentiation of the synthesizing tissue. The productivity of essential oils is ecophysiological and environmentally friendly. The review covers various aspects of the modulation of essential oil production, including the current concepts of relevant biosynthetic mechanisms. Essential oil-producing species are not limited to specific taxonomic groups but are widely distributed across the plant kingdom, with a variety of epidermal cellular structures producing and/or sequestering these oils. Terpenoids are the predominant constituent of plant essential oils, but many oils also contain other chemicals like phenylpropanoids. The composition of essential oils is extremely complex, with a wide variety of highly functionalized chemical entities. The recovery of essential oils is typically achieved through steam distillation, and the trade of these oils is expanding due to increasing consumer demand and the development of new agrotechnologies for commercial cultivation. Research efforts are focused on improving oil yields and economic profitability under diverse agro-climatic conditions.This review provides an overview of the physiological dynamics and regulation of essential oil production in plants. Essential oils are highly integrated with the overall physiology of the plant and depend on the metabolic state and developmental differentiation of the synthesizing tissue. The productivity of essential oils is ecophysiological and environmentally friendly. The review covers various aspects of the modulation of essential oil production, including the current concepts of relevant biosynthetic mechanisms. Essential oil-producing species are not limited to specific taxonomic groups but are widely distributed across the plant kingdom, with a variety of epidermal cellular structures producing and/or sequestering these oils. Terpenoids are the predominant constituent of plant essential oils, but many oils also contain other chemicals like phenylpropanoids. The composition of essential oils is extremely complex, with a wide variety of highly functionalized chemical entities. The recovery of essential oils is typically achieved through steam distillation, and the trade of these oils is expanding due to increasing consumer demand and the development of new agrotechnologies for commercial cultivation. Research efforts are focused on improving oil yields and economic profitability under diverse agro-climatic conditions.