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Salicylic acid (SA) plays a crucial role as a hormone in plants and belongs to the group of phenolic compounds. Our objective was to determine the optimal concentration of SA for enhancing the production of bioactive compounds in Agastache rugosa plants while maintaining optimal plant growth. The plants underwent SA soaking treatments at different concentrations (i.e., 0, 100, 200, 400, 800, and 1600 μmol mol-1) for 10 min at 7 days after they were transplanted. We observed that elevated levels of SA at 800 and 1600 μmol mol-1 induced oxidative stress, leading to a significant reduction across many plant growth variables, including leaf length, width, number, area, shoot fresh weight (FW), stem FW and length, and whole plant dry weights (DW) compared with that in the control plants. Additionally, the treatment with 1600 μmol mol-1 SA resulted in the lowest values of flower branch number, FW and DW of flowers, and DW of leaf, stem, and root. Conversely, applying 400 μmol mol-1 SA resulted in the greatest increase of chlorophyll (Chl) a and b, total Chl, total flavonoid, total carotenoid, and SPAD values. The photosynthetic rate and stomatal conductance decreased with increased SA concentrations (i.e., 800 and 1600 μmol mol-1). Furthermore, the higher SA treatments (i.e., 400, 800, and 1600 μmol mol-1) enhanced the phenolic contents, and almost all SA treatments increased the antioxidant capacity. The rosmarinic acid content peaked under 200 μmol mol-1 SA treatment. However, under 400 μmol mol-1 SA, tilianin and acacetin contents reached their highest levels. These findings demonstrate that immersing the roots in 200 and 400 μmol mol-1 SA enhances the production of bioactive compounds in hydroponically cultivated A. rugosa without compromising plant growth. Overall, these findings provide valuable insights into the impact of SA on A. rugosa and its potential implications for medicinal plant cultivation and phytochemical production.