Microfluidics is the science and technology of manipulating minute fluid volumes within micro-sized channels. It is an interdisciplinary technology that integrates physics, chemistry, biology, materials science, and microengineering, offering transformative potential for biomedical research. Recent innovations in the field of microfluidics such as organ-on-chip devices, droplet-based assays, 3D bioprinting, integration with artificial intelligence and CRISPR technologies have accelerated the development of physiologically close models and personalized medicine approaches. This review comprehensively examines the emerging field of microfluidics, including its design principles, fabrication techniques, and commonly materials used materials. Moreover, also highlights the key applications in stem cell culture, organ-mimicking systems, cancer and infectious disease research, drug discovery, and genome editing. Furthermore, it also compares with traditional methods, outlines the current challenges, along with future directions that emphasize smart, adaptive platforms for real-time monitoring and automated control.