Hydroxy-22xi lanosterol, also known as inotodiol, is a lanostane-type triterpenoid isolated from the medicinal mushroom *Inonotus obliquus* (Chaga mushroom). It is characterized by a hydroxy group at the C-22 position of the lanosterol skeleton. This compound is a key bioactive constituent responsible for many of the pharmacological properties attributed to Chaga extracts. Its primary research and potential therapeutic applications are centered on its significant biological activities. Inotodiol has demonstrated potent anti-tumor effects in various in vitro and in vivo studies, showing cytotoxicity against several cancer cell lines, including melanoma, lung carcinoma, and colon adenocarcinoma. The mechanisms may involve the induction of apoptosis and cell cycle arrest. Additionally, it exhibits notable anti-inflammatory and immunomodulatory properties, contributing to its investigation as a potential lead compound for drug development, particularly in the oncology and immunology fields. As a natural product, inotodiol is of high interest in the fields of nutraceuticals and complementary medicine. Its sourcing from *Inonotus obliquus* links it directly to traditional uses and modern research on fungal metabolites for health benefits. Current research continues to explore its full pharmacological profile, bioavailability, and potential for semi-synthetic modification to enhance its drug-like properties.