Over the last few years consumer's interest in health and functional foods has increased considerably in industrialized countries thus offering an opportunity for agro-food sector to add value to agricultural commodities. Functional food is any fresh or processed food claimed to have a health-promoting or disease-preventing property beyond the basic function of supplying nutrients. The market of functional food is indeed one of the fastest-growing within the global food industry. Functional foods offer potential health benefits that could enhance well-being of consumers and reduce the economic and social costs of non-communicable diseases. This review provides a report of various functional foods and their contribution in preventing and reducing the risk factors for several diseases thus suggesting avenues for future research efforts.