The broad-spectrum therapeutic properties of Azadirachta indica, popularly known as neem, have drawn a lot of focus in the dermo cosmetic industry. The process of photochemistry of neem and its applicability to skincare formulations are examined in this review, with particular attention paid to its bioactive ingredients, nimbin, nimbolide, and azadirachtin. Since these substances have anti-inflammatory, anti-microbial, wound-healing, and antioxidant qualities, neem is a promising natural ingredient for topical and dermo cosmetic products. In dermatology, the mechanisms of action of neem are examined, emphasizing its function in treating skin disorders such as psoriasis, eczema, and acne. Additionally, the formulation and development of neem-based products are examined in this review, along with the difficulties related to their stability, bioavailability, and efficient delivery systems. Analytical methods for evaluating the quality and composition of neem in dermo cosmetic formulations are described, including mass spectrometry (MS) and high-performance liquid chromatography (HPLC). Neem future in dermo cosmetics is also examined, with an emphasis on new developments and consumers increasing desire for sustainable and natural ingredients. There is also discussion of neem toxicological issues, specifically its safe dosage and possible side effects. The review conclusion highlights the need for more investigation into the long-term safety and effectiveness of neem in dermatological applications.