Nutraceuticals and functional foods are popular topics in the current day, owing to consumer knowledge of the health-beneficial aspects of foods. Nutraceuticals are food items or parts of foods that include bioactive chemicals in the form of tablets or capsules, such as vitamin supplements, fish oil, and plant extracts that aid in the prevention or reduction of serious illnesses. Berries, asparagus, broccoli, and nuts are examples of functional foods that include bioactive chemicals in their food matrixes. Fruits and vegetables contain several bioactive chemicals, such as phenolic acids and flavonoids, which have anticancer and anti-inflammatory properties. Cereals, grains, legumes, and spices have secondary plant metabolites, which have health-beneficial characteristics. Lactobacillus species are prevalent in dairy products such as yoghurt and fermented milk, which contribute to maintaining gut health. Ayurveda, an ancient Indian medicinal system, has stated the health benefits of several plants and spices. Algae contain long-chain fatty acids like PUFA and polysaccharides and can be explored for future functional foods.