Abstract Background Jew's ear is an important cultivated edible mushroom. It contains high levels of melanin, carbohydrates, fiber, protein, amino acids, ergosterol, and ascorbic acids, and a very lower level of fat. Various in vitro and in vivo studies have shown that Jew's ear exhibits numerous health-promoting properties. It is known to exhibit antioxidant properties to prevent free radical-induced oxidative damages; balance the blood glucose and lipid levels to alleviate diabetes, hyperlipidemia, and obesity; stimulate macrophage and inflammatory cytokines to prevent inflammation; exhibit anti-cancer properties by stimulating cellular apoptosis and prevent gut microbial dysbiosis by stimulating the growth of healthy gut microbiota. Scope and approach The data regarding A. auricula-judae and its health-promoting effects was obtained through library databases and several electronic searches, such as Google, Google Scholar, PubMed, Scopus, ResearchGate, and journal websites. Key findings and conclusions Our review presented a comprehensive insight into the chemical composition, health-promoting effects, and bioactive mechanisms of A. auricula-judae for the prevention of common diseases.