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Astragalus membranaceus (AM) is a notable herb found among medicinal and food plants. Its benefits stem from bioactive compounds that improve function of the immune system, thus preventing and curing many diseases and improve wellness. However, despite of the many potential health benefits, it is mainly used in Traditional Chinese Medicine (TCM). Therefore, this review describes its biologically active compounds and the associated health benefits found in recent studies of this herb, particularly with regards to neurodegenerative diseases, diabetes, and cancers along with the way of consumption, doses, and reasons for incorporating it into the diet. AM has positive effects on general health and reduces the risk of neurodegenerative diseases, type 1 and 2 diabetes and cancers development. It also helps improving disease treatments and reduces its side effects associated with food intake. Moreover, this herb has an acceptable organoleptic quality and characteristics that can improve general quality of food. This review is intended to shed light on the many potential benefits of including AM in the diet. However, further studies on specific food recipes for each disease, its effectiveness, as well as its side effects, need to be done to confirm these potential benefits.