Traditional pesticides are facing increasing limitations due to concerns about global food security. Essential oils (EOs), as natural plant-derived alternatives, have gained attention for their insecticidal and antimicrobial properties. This review highlights the key constituents of EOs, including terpenes, aldehydes, alcohols, ketones, and alkaloids, and evaluates their effectiveness against grain storage pests and microorganisms. We discuss various extraction methods, highlighting their advantages and disadvantages. EOs are shown to act through fumigation, contact, and behavioral disruption, although their precise mechanisms of action require further study. Their applications extend to pest eradication, mold prevention, and weed control, enhancing the effectiveness of pesticides. The role of microencapsulation and nanotechnology in stabilizing EOs for broader use in grain preservation is also explored, emphasizing their potential to enhance stored grain safety. Balancing the discussion on essential oils' utility, this review emphasizes the necessity for continuous research and innovation in sustainable pest management strategies.