T. dolabrata is a valuable conifer and an essential forestry species endemic to Japan. The essential oil extracted from the wood has a unique relaxing woody fragrance and possesses antifungal, and anti-allergic potentials. Given the potential of the plant wood to serve as a rich source of bioactive compounds and pharmacology, there is a need for a comprehensive understanding of the current state of knowledge on this medicinal plant. A systematic review adopting the PRISMA 2020 protocol with emphasis on studies carried out from January 2000 to December 2023 was conducted. The review focused on extraction techniques, phytochemistry, and therapeutic applications of wood biomass. Findings from the review have revealed the presence of various phytochemicals in the wood with terpenoids (Thujopsene and Hinikitiol) being the most abundant compounds. Among the methods reviewed, supercritical fluid extraction was reported as the method with the best extraction yield, and maceration was the cheapest and easiest method. The isolation methods used are mainly HPLC and column chromatography. The review also identified studies supporting the pharmacological potentials which include psychological and physiological activity, antifungal and antimicrobial activity, anti-allergic activity, cytotoxicity, and anti-tumor activity. However, there is a need for further research to unveil yet-to-be-identified compounds, optimize extraction methods using green techniques, and further validate therapeutic applications. T dolabrata wood emerges as a promising source of bioactive compounds, prompting exploration for sustainable extraction practices and expanded medicinal applications. •The extraction methods applied to T. dolabrata wood include both conventional and modern techniques.•The major compounds currently identified in the woods of T. dolabrata are mainly terpenoids and the most abundant compounds are thujopsene and hinokitol.•The current research on the pharmacological potentials of T. dolabrata wood includes allergy, antimicrobial, psychological, physiological, cytotoxicity, and anti-tumor activity.•Thujopsene and Hinokitiol are responsible for the major pharmacological potential of the wood.