The fruit fly, Drosophila melanogaster, has been one of the finest systems for decoding myriad puzzles across different domains of biology. Beyond addressing the fundamental problems, it has been used as a fantastic model organism for human disease research. Being an insect, Drosophila has a robust and advanced olfactory system that has been used many times as a model neuronal circuit to study fundamental questions in neurobiology. The circuit is well-explored at anatomical, physiological, and functional levels. It provides several advantages for the study of neurobiological disorders, such as spatiotemporally regulated misexpression or knockdown of disease proteins, genetic tractability, well-studied neuroanatomy, simple behavioural training paradigms, and quantifiable assays. Hence, Drosophila olfaction has been a favourite choice for the study of several neurodegenerative and neurodevelopmental disorders including Alzheimer's disease, Parkinson's disease, Huntington's disease, fragile X syndrome, etc. This review aims to discuss earlier progress and future scope in using the Drosophila olfactory system for modelling human neurological pathophysiology for conducting fundamental and applied research. A major goal of research in biological science is to alleviate human disease burden. Diverse experimental systems are required to address different aspects of disease aetiology. Drosophila is one of the finest in vivo systems; its olfactory system is arguably the most well-characterized circuit for modelling human neurological disorders. A vast amount of research has been conducted to decipher cellular, molecular, and even cognitive aspects of human disorders using the Drosophila olfactory system. This review aims at summarizing such research progress to date and critically analysing the suitability of this system for modelling more complex neurological conditions.