This review article explores the potential of N,N-Dimethyltryptamine (DMT) as an antipsychotic drug, acknowledging its therapeutic potential while addressing the controversies and potential risks associated with its use. DMT has distinctive effects on fast brain plasticity and functions as a serotonin agonist hallucinogen, primarily at the 5-HT2A receptor, immune-modulation, and in influencing neurotransmitter systems involved with mood and cognition. Research shows that DMT may have a normalizing effect on aberrant neural activity in schizophrenia and significant reductions in depressive symptoms. Despite demonstrated reductions in psychotic symptoms, some studies suggest that DMT could potentially intensify the symptoms of schizophrenia, highlighting the need for further investigation into its long-term effects and safety profile. Also, the potential for misuse, addiction, the legal status of DMT, and the ethical implications of its use pose significant challenges. DMT is a Schedule I drug in many countries, limiting scientific research and application in medical settings. DMT also has serious hazards and adverse repercussions for mental health, including the possibility of psychological dependency and unsettling memories or hallucinations. This review concludes that while DMT holds promise as a potential antipsychotic, its risks, legal status, and the potential for misuse necessitate careful regulation, ethical considerations, and further research to fully understand its therapeutic potential and limitations.