Licorice, as a traditional herb that belongs to Leguminosae Glycyrrhiza genus, has been used in traditional Chinese medicine for thousands of years. Currently, it was also listed in the Pharmacopoeia of the People’s Republic of China. Isoliquiritin, as a flavonoid compound, is widely present in the dry roots and the rhizomes of plants that belongs Glycyrrhiza genus (common name as licorice), which includes Glycyrrhiza uralensis Fisch., Glycyrrhiza inflata Bat., and Glycyrrhiza glabra L.. It has attracted widespread attention for its various biological activities. Isoliquiritin is one of the active ingredients, demonstrating various potential medicinal values such as antioxidant, anti-inflammatory, antibacterial, and neuroprotective properties. Although isoliquiritin has shown great potential in the field of medicine, its extraction and utilization still face some challenges. At present, the extraction of isoliquiritin mainly relies on plant sources, and the sustainable utilization of plant resources and optimization of extraction methods directly affect its production efficiency and cost. In addition, the biosynthetic pathway of isoliquiritin has not been fully elucidated, which limits the possibility of large-scale production through biotechnological means. This article aims to systematically review the sources and extraction methods of isoliquiritin, explore its potential applications in modern medicine, and analyze the shortcomings and future research directions in current research. This will provide important theoretical basis and practical guidance for the further development and utilization of isoliquiritin.