The use of chemical pesticides in agriculture contributes to soil, water and air pollution, biodiversity loss, and injury to non-target species. The European Commission has already established a Harmonized Risk Indicator to quantify the progress in reducing the risks linked to pesticides. Therefore, there is an increasing need to promote biopesticides, or so-called low-risk pesticides (LRP). Tea tree oil (TTO) is known for its antiseptic, antimicrobial, antiviral, antifungal, and anti-inflammatory properties. TTO has been extensively studied in pest management as well as in the pharmaceutical and cosmetic industry; there are already products based on its active substances on the market. This review focuses on the overall evaluation of TTO in terms of effectiveness and safety as a biopesticide for the first time. The collected data can be an added value for further evaluation of TTO in terms of the authorization extension as a fungicide in 2026.