Biological soil crusts (biocrusts) are key components of dryland ecosystems worldwide, contributing to soil stabilization, nutrient cycling and enhancing ecosystem resilience. Despite their ecological importance, biocrusts in the Arabian Peninsula are largely underexplored, with much of the region’s biocrust diversity and functionality remaining undocumented. This review synthesizes current knowledge on biocrusts across the Arabian Peninsula, focusing on their major taxonomic groups (cyanobacteria, fungi, lichens, mosses and algae), their ecological roles and distribution patterns. It also discusses the potential for biocrust restoration through strategies such as cyanobacterial inoculation and passive protection, which could contribute to land degradation and desertification control in the Arabian Peninsula. Our work identifies significant research gaps in biocrust biodiversity, ecophysiology and their role in ecosystem functioning within this region, and calls for more focused research to integrate biocrusts into land management strategies for the Arabian Peninsula.