Neurological disorders—including Alzheimer’s disease, Parkinson’s disease, anxiety, depression, and insomnia—are among the most challenging global health issues. Due to the limitations and side effects of conventional treatments, there is increasing interest in natural, plant-based alternatives. This review aims to evaluate medicinal plants used in Traditional Iranian Medicine (TIM) for neurological disorders and to assess their phytochemical and pharmacological relevance based on both classical texts and modern scientific literature. A total of 52 plant species belonging to 26 botanical families were identified, with Lamiaceae, Apiaceae, Euphorbiaceae, Pinaceae, Asteraceae, and Fabaceae being the most frequently represented. Phytochemical analyses revealed that compounds such as terpenoids (68%), phenolic compounds (52%), and flavonoids (20%)—alongside glycosides, alkaloids, steroids, amines, and saponins—are key contributors to neuropharmacological activity. These metabolites may exert neuroprotective, antioxidant, anti-inflammatory, anxiolytic, and cognition-enhancing effects through various mechanisms, including neurotransmitter modulation (e.g., serotonin, dopamine, GABA), suppression of neuroinflammation, and oxidative stress reduction. Notable species such as Curcuma longa, Cannabis sativa, Mentha spp., Narcissus jonquilla, and Peucedanum officinale contain well-documented bioactive compounds like curcumin, cannabidiol, linalool, galanthamine, and α-pinene. The phytochemical richness of Apiaceae and Lamiaceae suggests their prominence in traditional neurological care. In conclusion, this review highlights the therapeutic potential of traditional Iranian medicinal plants for neurological disorders and advocates for future bioassay-guided studies, synergistic compound analysis, and formulation standardization to support their integration into evidence-based modern medicine. |