Forests provide a wide range of ecosystem services essential for human well-being, including provisioning, regulating, and cultural benefits. Among these, the emission of biogenic volatile organic compounds (BVOCs) by trees has emerged as a key factor mediating physiological and psychological health effects. BVOCs, particularly terpenes and phytoncides, influence immune function, reduce stress, support cardiovascular and respiratory health, and contribute to mental well-being. Forest-based therapeutic practices, such as Shinrin-Yoku (forest bathing): capitalize on these natural compounds, demonstrating measurable improvements in mood, stress hormone levels, and immune parameters. Beyond direct health benefits, BVOCs interact with atmospheric chemistry, affecting air quality and urban environmental conditions. Despite growing evidence, the mechanisms linking specific tree species and BVOC profiles to health outcomes remain insufficiently understood, and interdisciplinary collaboration between forestry, medical sciences, and urban planning is limited. This review synthesizes current knowledge on forest ecosystem services and BVOCs in the context of human health, highlighting chemical ecology, therapeutic applications, and potential risks in urban environments. It further identifies knowledge gaps and outlines future research directions to guide forest management, urban green space design, and public health strategies. By integrating ecological, physiological, and environmental perspectives, forests and their volatile compounds can be effectively leveraged as nature-based tools to promote sustainable health and well-being.