One of the more disabling disorders, alopecia areata causes extensive hair loss, not just on the head but in many other areas of the body as well. This leads many patients to feel depressed and tends to lower their self-confidence, which lowers their quality of life. The illness has a 0.5% to 3.7% global prevalence, and its frequency has recently been on the rise. There are many potential causes for the development of the auto-immune condition AA, but in recent years, a loss of immune privilege has been linked with some of the most likely causes. Additionally, certain ligand-receptor pathways, such as the JAK-STAT signaling pathway with associated interleukins and cytokines, have been shown to play a significant role in the development of the condition. Thus, a number of pharmaceutical drugs targeting these potential etiologies have been developed as a result of these recent discoveries, some of which have proven to be highly effective. Trichoscopy and biopsies finally seem to diagnose the ailment best. The initial diagnosis of AA is typically done with history taking and utilizing several clinical assessment instruments, such as the ALTO and SALT score (to show severity). The majority of pharmacological therapy utilized for AA concurrently tackles the related autoimmune disorder because there are many different subtypes of AA and some subtypes tend to present with other associated autoimmune conditions. Steroids (used either intralesional or topically) and systemic steroids are examples of conventional therapies. Minoxidil is another topical medication that has been used for years. The most extensively researched of the new medications are JAK inhibitors (such as baricitinib, tofacitinib, and ruxolitinib), which were made possible by recent findings on the pathomechanics of AA. For example, biologics, which allow us to treat AA in a more focused manner, platelet- rich plasma, and phosphodiesterase 4 inhibitors are a few more recent therapy developments. Even while the therapeutic effects of these novel pharmaceutical agents on the auto-immune disorder appear to be highly promising, experiments are still being carried out to determine the most effective ways of treatment, bringing us one step closer to curing alopecia areata.