Alopecia Areata (AA) is an autoimmune disorder characterized by non-scarring hair loss. Its pathogenesis is not clear, but may include various factors like a genetic predisposition, immune system dysfunction, oxidative stress, allergies and the skin and gut microbiome. AA can affect individuals of all ages and has its peak incidence in the second and third decades of life. Clinically, it presents with patchy hair loss which can advance to total scalp hair loss (AA totalis) or complete loss of body hair (AA universalis). Nail involvement is also commonly associated. The course of the disease is unpredictable, and early disease onset and severe initial presentation are negative prognostic factors. The diagnosis is mainly clinical and based on the pattern of hair loss. Additionally, trichoscopy or in some cases a scalp biopsy can be performed. The treatment is adjusted to the severity of AA. Mild and unifocal cases can be treated with topical therapies, preferably with intralesional corticosteroids. In more severe cases, systemic therapies are indicated, including immunosuppressants such as methotrexate or cyclosporine. Recently, JAKi like baricitinib and ritlecitinib have emerged as promising new treatments for severe cases of AA. To conclude, AA is challenging due to its unpredictable course and the potential psychological impact on the patients. The emerging therapies offer new hope for patients with severe AA to achieve hair regrowth and improvement of the quality of life.