Fruit berries are one of the most effective source of bioactive food ingredients with multiple health benefits when consumed regularly. Phalsa fruit (Grewia asiatica L.) a native to the Himalayan region grows equally well in tropical areas of the world yet unexplored with regards to its immense nutritional benefits. The phalsa seed, fruit, and pulp contain numerous functional phytochemicals that can be used to treat various diseases, and have be found to be highly effective in improving respiratory and cardiac functioning. Its cultivation has been limited to subsistence cultivation and it is sold in the form of raw fruit mostly. There are certain challenges as regards to its perishable nature of the berry fruit, and the optimization of the crop yield. Therefore, this comprehensive review is designed to highlight its economic and nutritional potential for the food and beverage industry as an effective source of bioactive functional food/beverage ingredients. Further potential area of research and developments have been identified for the subsequent authentication of health effects of phalsa berry fruit. Moreover, issues related to value addition in food product development have been explained along with proposed solutions.