Rare diseases represent a significant global healthcare challenge due to their low prevalence, delayed diagnosis, limited treat ment options, and high treatment costs. Orphan drugs have emerged as an essential therapeutic approach to address these unmet medical needs; however, their development and market authorization require specialized regulatory pathways and sup portive incentives. This review provides a comprehensive overview of orphan drug development, global regulatory pathways, market authorization processes, and regulatory incentives across major regulatory authorities, including the United States Food and Drug Administration (USFDA), European Medicines Agency (EMA), Pharmaceuticals and Medical Devices Agency (PMDA), Therapeutic Goods Administration (TGA), and Central Drugs Standard Control Organisation (CDSCO). It further discusses the major challenges associated with orphan drug development, including clinical, regulatory, manufacturing, and market access barriers, while highlighting emerging opportunities such as artificial intelligence, gene therapy, precision medicine, and interna tional regulatory collaboration. Overall, strengthening regulatory harmonization, fostering innovation, and enhancing global col laboration are essential to improve the development, approval, and accessibility of safe and effective orphan drugs for patients with rare diseases worldwide.