The depletion of the ozone layer has intensified ultraviolet (UV) radiation exposure, leading to oxidative stress, DNA damage, inflammation, photoaging, and skin cancer. Medicinal plants, widely used in Traditional Herbal Medicine (THM), particularly in Traditional Chinese Medicine (TCM), have demonstrated significant therapeutic potential due to their well-characterized active compounds and established photoprotective effects. This review systematically evaluates 18 medicinal plants selected based on their traditional use in skin-related conditions and emerging evidence supporting their efficacy against UV-induced skin damage. Their bioactive components exert antioxidant, anti-inflammatory, DNA repair, and depigmentation effects by modulating key signaling pathways, including Nrf2/ARE-, MAPK/AP-1-, PI3K/Akt-, and MITF/TYR-related melanogenesis pathways. Moreover, novel drug delivery systems, such as exosomes, hydrogels, and nanoemulsions, have significantly enhanced the stability, bioavailability, and skin penetration of these compounds. However, challenges remain in standardizing plant-derived formulations, elucidating complex synergistic mechanisms, and translating preclinical findings into clinical applications. Future interdisciplinary research and technological advancements will be essential to harness the full therapeutic potential of medicinal plants for UV-induced skin damage prevention and treatment.