Nardostachys jatamansi, a medicinally important herb of Nepalese origin, has been used for centuries in the Ayurvedic and Unani systems of medicine. In combination with Marsilea minuta it is being used as an antistress and anticonvulsant drug and also finds use in the treatment of epilepsy. Recently, it has been reported that N. jatamansi, which plays an important role in protecting from cerebral ischemia and liver damage, is also used for the treatment of osteoporosis and hypercalcemia. The other member of the genus Nardostachys, N. chinensis, possesses antifungal and antimalarial properties. It is also used in the treatment of skin dysfunction. A short summary of the chemical constituents of the two species along with their physical and biological properties is reported.