Xylanase belongs to the glycosidase (GH) family which cleaves β-1,4-xylosidic linkages in xylan, a hemicellulose that forms the major component in plant cell walls into xylose and xylan oligosaccharides. This enzyme has broad applications in the food industry and the enzyme market shows robust potential due to increasing consumer demand for more natural food products. Case studies on the role of xylanase in various food processing sectors, such as baking, beverage production, prebiotics and animal feed are discussed. Various factors affecting xylanase activity, such as pH, temperature and activating/inhibiting agents are discussed and analyzed. Additionally, this chapter covers the microbial sources, production and purification methods of xylanase, with special highlights on the pros and cons of each method. This chapter also emphasizes the commercialization of xylanase, addressing safety considerations and regulatory aspects. Despite its broad utility, challenges related to optimizing enzyme stability and activity in harsh food processing conditions remain. Future research should focus on enhancing xylanase’s functional properties to meet industrial requirements. This chapter concludes by emphasizing trends and opportunities for further research, focusing on developing more cost-effective production techniques and expanding xylanase’s application for more sustainable and efficient food production processes.