Acute disseminated encephalomyelitis (ADEM) is a, rare disease of autoimmune origin affecting the neurological system, and is characterized by widespread inflammation and demyelination in the spinal cord and brain. Typically triggered by infections or vaccinations, ADEM predominantly affects children but can occur at any age. Clinically, it presents with rapid onset of multifocal neurological symptoms, including headache, fever, altered mental status, motor deficits, and ataxia. Diagnosis is primarily clinical, supported by magnetic resonance imaging (MRI) which reveals disseminated lesions of white matter. Cerebrospinal fluid (CSF) analysis often reveals pleocytosis and increased protein levels, though these findings are non-specific. The differential diagnosis includes multiple sclerosis (MS), neuromyelitis optica (NMO), and other infectious or inflammatory conditions. Management involves high-dose corticosteroids as first-line treatment, with intravenous immunoglobulin (IVIG) or plasmapheresis reserved for refractory cases. Early diagnosis and treatment are crucial for favorable outcomes, as ADEM generally has a good prognosis with complete or near-complete recovery in most patients. However, a minority may experience recurrent episodes or long-term neurological sequelae. This review provides an outline of the contemporary understanding of ADEM, highlighting the importance of prompt recognition and management to mitigate long-term complications.