It is a highly oxidized tetranortriterpenoid which boasts a plethora of oxygen-bearing functional groups, including an enol ether, acetal, hemiacetal, tetra-substituted epoxide and a variety of carboxylic esters.

Initially found to be active as a feeding inhibitor towards the desert locust (Schistocerca gregaria),[3] it is now known to affect over 200 species of insects, by acting mainly as an antifeedant and growth disruptor.

Azadirachtin is biodegradable (it degrades within 100 hours when exposed to light and water) and shows very low toxicity to mammals (the LD50 in rats is > 3,540 mg/kg making it practically non-toxic).

Many more compounds, related to azadirachtin, are present in the seeds as well as in the leaves and the bark of the neem tree which also show strong biological activities among various pest insects [4][5] Effects of these preparations on beneficial arthropods are generally considered to be minimal [citation needed].

Because pure neem oil contains other insecticidal and fungicidal compounds in addition to azadirachtin, it is generally mixed at a rate of 1 US fluid ounce per US gallon (7.8 mL/L) of water when used as a pesticide.