In this article the beneficial effect of phytosterols in the management of neurodegenerative disorders have been discussed with respect to anti-inflammatory effect and antioxidant effect of phytosterols. Regarding the anti-inflammatory effect of phytosterols it is found that they regulate Apolipoprotein-E which activates microglia and regulate PPAR which in turn is necessary for synthesis of interleukins. Phytosterolsexhibit antioxidant effect by eliminating reactive oxygen species (ROS) and multiplying enzymatic antioxidants. A special mention about how phytosterols are useful in Alzeimer’s disease has been discussed in this article. Phytosterols inhibit the formation of amyloid-beta as it arrests the cleavage of amyloid precursor protein (APP) by β-Secretase and prevent the formation of toxic oligomers. Thus this review is a consolidated collection of information regarding the therapeuticpotencies of phytosterols in the area of neurodegenerative disorders.