Date fruit, a nutrient-dense ancient crop, has gained renewed interest as a functional ingredient in modern bakery products. With over 1500 varieties, dates offer natural sweetness, bioactive compounds, and essential nutrients. This chapter examines the transformative effects of date incorporation, in the form of paste, powder, syrup, or seed flour, on the physicochemical, nutritional, and sensory properties of baked goods. The study highlights that partial substitution (25–50%) of refined sugar with date derivatives enhances the fiber content (up to 7.73%), mineral profile, and antioxidant capacity in products such as bread, cakes, and cookies while maintaining acceptable sensory attributes. Notable by-products, such as seeds and press cake, further improve the crude fiber and phenolic content, although their higher concentrations reduce product volume due to altered air entrapment. Technological benefits include improved moisture retention and Maillard-driven flavor enhancement, while challenges in texture optimization and consumer acceptance at elevated substitution levels are noted. The study highlights its role in reducing the glycemic impact and supporting sustainable food systems through the valorization of agro waste. Emerging applications in muffins, snack bars, and diabetic-friendly formulations highlight the potential of dates as a clean-label alternative to refined sugars, aligning with global trends toward nutrient-dense, health-focused bakery products.