The aryl hydrocarbon receptor (AHR) is a ligand-activated transcription factor, prominently expressed in barrier tissues and organs. The functional diversity of AHR signaling in physiology stems primarily from ligand specificity and crosstalk with its protein partners. Its ability to sense chemically diverse cues underpins its emerging therapeutic potential in autoimmune and oncological disorders. Recent breakthroughs in structural biology have elucidated key aspects of AHR function and modulation, including its promiscuous ligand recognition, heterodimerization, DNA response element engagement, and ligand-dependent receptor activation, distinguishing it from other basic helix-loop-helix-PER-ARNT-SIM (bHLH-PAS) family members. In this review article, we discuss these advances, highlighting how high-resolution structural insights are redefining our mechanistic understanding of AHR and guiding strategies for its pharmacological modulation across diverse physiological and pathological contexts.