Agile methodology, a dynamic approach originally derived from software development, has rapidly gained substantial traction across a diverse range of industries due to its unparalleled adaptability, iterative nature, and customer-centric ethos. In the intricate and rapidly evolving landscape of the healthcare sector, where optimal patient outcomes, operational efficiency, and stringent regulatory compliance stand as imperatives, the thoughtful application of Agile principles emerges as a transformative catalyst for reshaping medical practices. This comprehensive review delves deeply into the nuanced underpinnings of Agile methodology in healthcare, exploring its manifold benefits, intricate challenges, successful case studies of implementation, and the boundless horizon of future prospects it holds.