Purpose of Review <p>This review comprehensively provides an insight into the application and functionality of modified starch (MS) in diverse dairy products like ice cream, cheese, frozen desserts, beverages, etc. The main objective of this review is to assess how MS improves the functionality of dairy products, to meet the growing demand of health-conscious consumers for healthy, sustainable and cost-effective dairy products. Despite the growing attention of the research network, there exists a significant gap concerning the influence of starch modification techniques on the functional, textural and sensory attributes of dairy products. This review systematically addresses the gap by comparing starch modification techniques, source of starch and level of incorporation on the attributes of dairy products, providing an evidence-based strategy for the researchers and the product developers.</p> Recent Findings <p>Recent studies have deduced that MS emerges as an effective approach to upgrade the product quality without compromising on the sensorial attributes and nutritional composition. It also serves as an effective stabilizer, fat replacer, thickening agent and transporter of bioactive compounds in various types of dairy products. However, the functionality of MS depends on the modification techniques and the source of starch. Chemical and enzymatic modified starches have emerged as better alternatives to improve thermal stability and gel structure, respectively. But excessive incorporation of MS showcased an adverse effect on flavor release, melting behavior and mouthfeel.</p> Summary <p>MS multifaceted approach to improve texture, decrease syneresis, enhance viscosity and ability to replicate the mouthfeel of fat positions MS as a promising functional ingredient for low-fat formulations. Imbibition of MS in dairy products presents an innovative and appealing alternative for further research for personalized nutrition. Yet their incorporation in dairy products requires s careful optimization approach to bring a balance between functional, sensory and nutritional attributes. This review critically targets the significant trends, constraints and research gaps, providing a platform for the development of modified starch incorporated dairy products.</p>