<p>The review is a systematic study of the biotechnology application in the food oil industry, which has two key aspects namely food production and food processing. Biotechnological inventions like bio-agricultural enhancement, genetic engineering and metabolic engineering have in the production field tremendously increased the yield and quality of the oilseeds. The methods assist in reducing the infestation of cereal cropland, enhancing the ratio of saturated and unsaturated fatty acids, and enhancing the production of crops with high content of monounsaturated and polyunsaturated fatty acids. These developments will help in sustainable farming and provide quality supply of oils in plant products. Biotechnology is also more efficient in extraction processes through cleaner methods than chemical methods that are used in the traditional method of extraction. Enzyme-based extraction, fermentation by microorganisms and bio-enhanced recovery of oil enhances yield of oil, conserves bioactive properties and minimizes harm to the environment. The use of enzyme processes especially lipases, cellulases and pectinases have been vital in the refining and modification of the oils so as to make it stable and functional. Biotechnology combines the idea of sustainable farming with modern bio-processing approaches, which allows producing the high-quality edible oils and functional lipid products in an eco-friendly and efficient manner.</p>