DanBean (i.e., larvae of Clanis bilineata tsingtauica), a traditional edible insect in China, has emerged as a significant research focus for addressing global food insecurity and facilitating ecological agricultural tranition. This prominence stems from its high protein, substantial ecological and economic value, and considerable sustainable development potential. Recent studies have increasingly revealed its utility in food and feed applications. Within agricultural systems, DanBean serves not only as a high-quality protein supplement but also functions as a vital biological resource due to its efficient bioconversion capacity, enabling the recycling of agricultural waste in ecological frameworks. This paper systematically reviewed the biological characteristics, artificial breeding, resource utilization, current agricultural applications, and persistent challenges associated with DanBean. Furthermore, it delineates the paradigm shift in public perception from “agricultural pest” to “multifunctional resource insect”. Ultimately, this work aims to propose a China-specific sustainable agricultural strategy for enhancing DanBean industrialization and market value, thereby supporting national “Dual Carbon” goals (i.e., Carbon Peak and Carbon Neutrality) and rural revitalization initiatives.