Illicium difengpi K.I.B. et K.I.M. is a member of the Illiciaceae family with a yet not fully explored utilization value. To provide references for the systematic understanding of I. difengpi (Illiciaceae), the morphological and structural characteristics, wild resource distribution, chemical compounds, pharmacological effects, utilization, and protective measures of this species are reviewed. We conclude that (i) I. difengpi (Illiciaceae) is an endemic and indigenous medicinal species that has been used to treat rheumatoid arthritis and traumatic injury in China; (ii) I. difengpi (Illiciaceae) can endure various abiotic stresses, especially extreme drought, and thus has scientific value for exploring adaptive mechanisms of tolerance to extreme drought and in the ecological restoration of karst rocky desertification areas; and (iii) the beautiful tree shapes of I. difengpi (Illiciaceae) give it potential ornamental value. However, the wild resources of I. difengpi (Illiciaceae) have rapidly decreased, and there is an urgent need to protect this endangered species to maintain its diversity. Protection measures include the protection of wild germplasm resources, the establishment of an I. difengpi (Illiciaceae) germplasm resource bank, and the development of large-scale ecological planting techniques. In further research, the medicinal and scientific value of I. difengpi (Illiciaceae) should be systematically explored to clarify the plant’s effective pharmaceutical value, clinical applications, mechanisms of drought adaptation, and genetic diversity.