Ursodeoxycholic acid is primarily used in the treatment of gallstones, particularly those that are cholesterol-based. It works by reducing the amount of cholesterol secreted into bile, helping to dissolve the stones over time. This makes it a non-surgical option for patients who cannot undergo surgery or prefer to avoid it.

In liver health, it is commonly prescribed for primary biliary cholangitis, a chronic liver disease. It helps improve liver function tests and slows disease progression by promoting bile flow and reducing liver inflammation. This can lead to better overall liver health and delay the need for a liver transplant.

Additionally, it is sometimes used to manage certain liver conditions in newborns, such as neonatal hepatitis, by aiding in bile excretion and reducing liver damage. Its protective effects on liver cells make it a valuable therapeutic agent in various hepatobiliary disorders.