Litchi (Litchi sinensis), a fruit with a sweet and white aril, cultivated mainly in Southeast Asia and possesses anticancer, antibacterial, antioxidant, and other therapeutic properties. It is a delicacy among children. However, an outbreak of acute encephalopathy syndrome (AES) in litchi growing regions during the seasons of litchi ripening and harvesting (May-June) resulted in symptoms of lethargy, weakness, fever, vomiting, seizures, and coma that was most common among malnourished children below 15 years. Upon successful epidemiological studies, it was confirmed that the non-protein amino acids such as hypoglycine A (HGA) and methylenecyclopropylglycine (MCPG) are responsible for the AES outbreak. Most of the underprivileged and malnourished kids with an empty stomach venture into the litchi orchards to savor the fruit during the litchi harvesting season. Their fasting condition results in decreased glucose levels in the blood. The decreased glucose levels trigger glycogenolysis. However, gluconeogenesis takes over glycogenolysis to replenish the glucose levels due to fewer glycogen stores in malnourished children. The toxins are involved in fatty acid oxidation and gluconeogenesis pathways, by blocking several steps in the former process. Depleted glycogen stores and suppression of gluconeogenesis synergistically cause hypoglycemia and accumulation of toxic intermediates from the metabolic pathway leading to metabolic failure. The incidence of AES can be prevented by creating proper awareness among the farmers, vendors and consumers on the importance of adverse effects of litchi fruit when consumed on empty stomach or fasting state. Further, elucidating detailed biochemical pathway of HGA and MCPG toxicity, improving agricultural and public health practices, keeping glucose stores and glucose banks in the areas which are highly prone to litchi induced toxicity are some of the therapeutic measures. This review highlights and discusses the AES incidences, mechanistic pathways involved in litchi fruit toxicity, and corresponding risk factors involved and possible treatment and preventive approaches.