Neem, scientifically known as Azadirachta indica, is a flowering plant indigenous to the subcontinent of India and a common medicinal plant of the Meliaceae family. It has been recognized as a potential biocidal product with maximum efficiency in plant pest and disease management. The bioactive compound of neem is Azadirachtin. It influences insects' metabolic processes and acts as a larvicidal, insecticidal agent. Excessive and indiscriminate amounts of chemical pesticides are used to mitigate pest-related problems, leading to environmental pollution and the growth of resistant strains of pests. Biopesticides are regarded as a synthetic pesticide substitute to reverse the negative trend. The active components of neem extract possess increased regulatory activity and an exclusive mode of action through ecdysone disruption. Neem-derived biopesticides can control major pest populations (leaf miners, aphids, whiteflies, fungi, etc.). This review discusses various extraction processes of neem active components and their mode of action.