Sponges are the rich sources of bioactive natural products from marine habitats. Since many sponges harbor diverse bacterial communities, it has long been suspected that many sponge‐derived compounds are of microbial origin. The present review gives a comprehensive overview of the source, taxonomy, country of origin or geographical position, chemical class, and biological activity of sponge-derived new natural products. Also this review aims at describing some of the most highly cited reviews of the last decade on sponge-derived bioactive compounds and the most promising substances extracted and isolated from marine sponges for pharmaceutical applications. Preset study gives new developments in the field of marine sponge metabolite research and important findings for bioactive compounds from in vitro, in vivo and clinical studies for therapeutic drug applications.