The rapid growth of the global population necessitates the exploration of alternative, plant-based protein sources. Acacia nilotica, a lesser-known legume, boasts a protein content ranging from 23.37 to 30.95%, positioning it as a valuable yet underutilized resource. However, despite its nutritional advantages, there has been a paucity of research dedicated to its potential applications in food. The overarching goal of this review is to embark on its utilization as a novel food ingredient. The analysis revealed that the A. nilotica plant is a reservoir of phytochemicals such as polyphenols, terpenes, pyrogallol, epicatechin, rutin, ferulic acid, pyrocatechol, phlobatannin, ellagic acid, which gives the plant its antioxidant power. A. nilotica is a notable medicinal plant with a comprehensive spectrum of pharmacological activities, including antioxidant, antimicrobial, analgesic, anti-arsenicsis, anti-diabetic, anti-diarrheal, antihyperlipidemic, antihypertensive, anti-malaria, antipyretic, antispasmodic, antiulcer, lactogenic, wound healing, enzyme inhibitory, anticancer, antiviral, and anti-inflammatory owing to its wide variety of bioactive compounds. The raw pods have been traditionally used as vegetable and seed flour in panjiri and laddu. It is imperative to conduct further research on toxicity studies to broaden the potential applications of functional foods and to ensure their safety.