Severe acute respiratory syndrome coronavirus type 2 (SARS-CoV-2) is the culprit behind the COVID-19 pandemic, which has killed millions of people worldwide. SARS-CoV-2 harbors a crucial papain-like protease domain, named PLpro, in its non-structural protein 3 (nsp3). This enzyme is not only required for processing the viral polyprotein at the nsp1/2, nsp2/3, and nsp3/4 cleavage junctions but also impairs the host immune system by removing ubiquitin and ISG15 modifications from host proteins. Aiming to address the pressing need for additional oral antivirals due to emerging SARS-CoV-2 variants and drug-resistant mutants, we focused on targeting PLpro. Despite its relatively limited exploration compared to other viral proteins, its essential role in viral replication and impact on the host immune response warranted further investigation. In this study, we determined co-crystal structures of PLpro with nine inhibitors using X-ray crystallography and step-by-step modification of the compounds based on their interactions with their binding pocket. First, we discovered a novel binding site (the “Val70Ub site”) for the covalent inhibitor Jun11313 near the established BL2 groove pocket. Comparative analysis with ubiquitin-bound and ISG15-bound PLpro structures (PDB 6XAA and 7RBS) revealed that the thienyl group of Jun11313 occupied the same hydrophobic site as Val70 from ubiquitin and Leu152 from ISG15. Leveraging the Val70Ub site and the BL2 groove, we obtained multiple PLpro inhibitors with inhibitory constants (Ki values) in the two-digit nanomolar range. The co-crystal structures of SARS-CoV-2 PLpro with eight biarylphenyl PLpro inhibitors, Jun11941, Jun12129, Jun12303, Jun12162, Jun12199, Jun12197, Jun12145, and Jun12682, were solved (2.5–3.1 Å resolution). The lead compound, Jun12682, exhibited efficacy against SARS-CoV-2 and its variants (Ki = 38.5 to 63.5 nM), including nirmatrelvir-resistant strains, with EC50 values ranging from 0.44 to 2.02 μM. Twice-daily oral administration of Jun12682 significantly improved survival rates, reduced lung viral loads, and mitigated lesions in a mouse model of SARS-CoV-2 infection. These findings highlight the promise of PLpro inhibitors, particularly Jun12682, as potential oral antiviral candidates against SARS-CoV-2.