Substance P is primarily involved in transmitting pain signals from peripheral nerves to the central nervous system, making it a key target in pain management research. It is widely studied for its role in chronic pain conditions, including neuropathic pain and inflammatory diseases such as arthritis. Due to its presence in high concentrations in sensory nerve fibers, it contributes to neurogenic inflammation, which is relevant in conditions like asthma, psoriasis, and inflammatory bowel disease.

In addition to pain and inflammation, Substance P plays a role in regulating mood and stress responses, leading to investigations into its potential involvement in depression and anxiety disorders. It also influences gastrointestinal motility and secretion, which links it to disorders like irritable bowel syndrome (IBS).

Because of its broad physiological effects, Substance P and its receptor (NK1 receptor) are targets for drug development. NK1 receptor antagonists have been explored for treating nausea and vomiting (especially chemotherapy-induced), depression, and chronic pain. Research continues into its use in regenerative medicine, as Substance P has shown potential in promoting tissue repair and wound healing by stimulating cell proliferation and immune responses.