Medicinal or herbal spices are grown in tropical moist evergreen forestland, surrounding most of the tropical and subtropical regions of Eastern Himalayas in India (Sikkim, Darjeeling regions), Bhutan, Nepal, Pakistan, Iran, Afghanistan, a few Central Asian countries, Middle East, USA, Europe, South East Asia, Japan, Malaysia, and Indonesia. According to the cultivation region surrounded, economic value, and vogue, these spices can be classified into major, minor, and colored tropical spices. In total, 24 tropical spices and herbs (cardamom, black jeera, fennel, poppy, coriander, fenugreek, bay leaves, clove, chili, cassia bark, black pepper, nutmeg, black mustard, turmeric, saffron, star anise, onion, dill, asafoetida, celery, allspice, kokum, greater galangal, and sweet flag) are described in this review. These spices show many pharmacological activities like anti-inflammatory, antimicrobial, anti-diabetic, anti-obesity, cardiovascular, gastrointestinal, central nervous system, and antioxidant activities. Numerous bioactive compounds are present in these selected spices, such as 1,8-cineole, monoterpene hydrocarbons, γ-terpinene, cuminaldehyde, trans-anethole, fenchone, estragole, benzylisoquinoline alkaloids, eugenol, cinnamaldehyde, piperine, linalool, malabaricone C, safrole, myristicin, elemicin, sinigrin, curcumin, bidemethoxycurcumin, dimethoxycurcumin, crocin, picrocrocin, quercetin, quercetin 4'-O-β-glucoside, apiol, carvone, limonene, α-phellandrene, galactomannan, rosmarinic acid, limonene, capsaicinoids, eugenol, garcinol, and α-asarone. Other than that, various spices are used to synthesize different types of metal-based and polymer-based nanoparticles like zinc oxide, gold, silver, selenium, silica, and chitosan nanoparticles which provide beneficial health effects such as antioxidant, anti-carcinogenic, anti-diabetic, enzyme retardation effect, and antimicrobial activity. The nanoparticles can also be used in environmental pollution management like dye decolorization and in chemical industries to enhance the rate of reaction by the use of catalytic activity of the nanoparticles. The nutritional value, phytochemical properties, health advantages, and both traditional and modern applications of these spices, along with their functions in food fortification, have been thoroughly discussed in this review.