The rising demand for safe, affordable and sustainable therapeutic agents has rekindled scientific interest in ethnomedicinal and ethnoveterinary plants as valuable sources of bioactive compounds. Modern medical and veterinary facilities are not available in rural and tribal areas so the primary health care system for these populations has been traditional knowledge on medicinal plants. Rajasthan is a significant storehouse of ethnobotanical and ethnoveterinary resources with its extensive floral diversity and vast indigenous knowledge. This review summarizes the traditional uses of ethnomedicinal and ethnoveterinary plants with special emphasis on Karauli district of Rajasthan and emphasizes the need for phytochemical investigations for validation of their therapeutic potential. The review summarizes the published literature on the diversity of medicinal plants, traditional formulations, ethnoveterinary uses and phytochemical constituents such as alkaloids, flavonoids, phenolics, tannins, saponins, glycosides, terpenoids and other secondary metabolites responsible for diverse biological activities. Recent phytochemical screening and ethnopharmacological evaluations of plants have revealed that many plants used traditionally possess significant antioxidant, antimicrobial, anti-inflammatory, insecticidal and other pharmacological properties. Such findings endorse the continued use of such plants in health care and livestock management. The review additionally emphasizes the immediate need of documentation of indigenous knowledge, conservation of medicinal plants biodiversity and promotion of scientific validation through phytochemical, pharmacological and toxicological studies. The integration of traditional knowledge with modern scientific approaches can aid in the identification of new therapeutic agents, while ensuring sustainable use and conservation of valuable medicinal plant resources.