Introduction: The main components of olive oil include oleic acid, phenolics compounds (hydroxytyrosol, tyrosol, and oleuropein) and squalene. Studies have demonstrated that the phenolic compounds of olive oil have positive effects on certain physiological parameters, such as plasma lipoproteins, oxidative damage, inflammatory markers, platelet and cellular function and antimicrobial activity. This study aimed to review studies on the health benefits of olive oil. Related articles in English were searched in Pubmed, Science direct, Google scholar, Springer, Wiley Online Library and Elsevier in human, animal, in vitro and in vivo studies. Results showed a lower incidence of coronary heart disease (by antithrombotic properties and improving lipid profiles, vascular function, blood pressure and oxidative stress) and certain cancers (mainly breast, colorectal and prostate cancers). Olive oil was found to lead to modification of immune and inflammatory responses. Oleocanthal, a phenolic compound in virgin olive oil, has possesses anti-inflammatory properties similar to ibuprofen. Olive oil also appears to have a role in bone mineralization. In studies on rats, tyrisol, hydroxytyrosol and oleuropein significantly increased bone formation and can hence be used as effective remedies in the treatment of osteoporosis symptoms. The beneficial effects of olive oil are attributed to its monounsaturated fatty acids (MUFA) and phenolic compounds.