IL-25, also known as IL-17E, is a member of the IL-17 cytokine family mostly produced by epithelial cells and innate immune cells. After binding to the IL-17RB/IL-17RA complex, IL-25 induces downstream signaling responses in epithelial cells and type 2 lymphocytes, which initiates, propagates, and sustains type 2 immunity. The function of IL-25 in allergic diseases such as asthma has been well established, and now also is extended to diseases such as inflammatory bowel disease and cancer. This review summarizes the literature on IL-25 and discusses the unsolved questions. Our knowledge on IL-25 will pave the pathway for targeting this cytokine in inflammatory diseases.