Herbal medicines and chemical medicines are both commonly used in the treatment of a variety of ailments. However, the cost-effectiveness of these remedies has remained a controversial topic. This review aims to compare the cost-effectiveness of herbal medicines to chemical medicines. Likewise, a comprehensive search was conducted on reputable databases, including PubMed, Web of Science, and Scopus, using relevant keywords. The search methodology encompassed the utilization of specific Medical Subject Headings (MeSH) terms, namely "herbal medicine," "plant extracts," "phytotherapy," "cost-benefit analysis," "cost savings," "economics, pharmaceutical," "comparative effectiveness research," "therapeutics," "pharmaceutical preparations," and "chemistry, pharmaceutical." The search was restricted to articles published in English within the time span of January 2010 to December 2022.The selection process involved both systematic and subjective approaches, with the most relevant articles identified based on the researcher's expertise. Out of the initial 41 articles, only 9 were found to be eligible for inclusion in the study after a thorough analysis. Thus, only a few studies met the criteria for inclusion in this review. The results indicated that herbal medicines possess the capacity to offer economically viable alternatives to conventional pharmaceuticals. However, the diversity in research methodologies and outcomes poses challenges in establishing conclusive findings. It is noteworthy that while herbal medicines are more cost-effective, they may also induce side effects that are contingent upon the specific herb and the individual's health condition. Consequently, the inclusion of adverse effects associated with herbal medicines and plant extracts should be considered when conducting cost-effectiveness analyses.