Isobavachalcone (IBC), a naturally occurring chalcone, is mainly isolated from the seeds of Psoralea corylifolia Linn. IBC demonstrates multiple pharmacological activities, including anti-cancer, anti-microbial, anti-inflammatory, antioxidative, neuroprotective, and among others. Several potential targets of IBC, such as AKT, dihydroorotate dehydrogenase (DHODH), have been identified. The pharmacokinetic profiles of IBC have been reported as well. In this review, the pharmacological activities, the underlying mechanisms, the potential targets, and the pharmacokinetic profiles of IBC were summarized. IBC might be a promising lead compound for drug discovery.