Cereals, globally vital staples, are traditionally processed with thermal methods that compromise nutritional and functional qualities. Cold plasma (CP), a nonthermal technology, has emerged as an alternative to enhance cereal grain processing by preserving essential nutrients and functionality. CP technology employs reactive ions for structural and molecular modifications in cereals like wheat, rice, and millet, leading to improved nutritional characteristics and quality. These modifications enhance starch solubility, protein functionality, and lipid profiles, positively influencing product texture, digestibility, and shelf life. However, broader adoption of CP is constrained by high equipment costs and technical complexity. Integrating CP with machine learning models optimizes process parameters, mitigating technical challenges and improving processing efficiency. This review emphasizes CP’s potential to address the limitations of conventional cereal processing, highlighting its sustainability and eco-friendliness. Future studies should focus on expanding CP applications across diverse cereal grains, detailing their effects on vitamins and minerals, and refining optimization parameters for practical industrial utilization.