Microfluidization has been used as an emerging process for stabilizing milk and dairy products by improving their physicochemical, functional, nutritional, rheological, textural, and sensory properties. The presented chapter reviews the principles of microfluidization and its advantages over traditional homogenization. The applications of microfluidization treatment in various dairy products comprise milk, yogurt, cheese, ice cream, cream liqueurs, whey protein concentrates, and plant-based milk analogues. The decrease in particle size and subsequent rise in surface area have resulted in these distinctive quality modifications. Microfluidization improves emulsion stability and enhances the quality of dairy products, such as rheological, textural, and sensory attributes, while preserving their nutritional value. Its potential to improve the digestibility of dairy products, reduce syneresis in yogurt, improve cheese texture, and extend the shelf life of dairy products has been shown. Moreover, microfluidization treatment has been applied to plant-based dairy alternatives, enhancing their stability and solubility as well as their sensory characteristics. However, it has some challenges, such as elevated operating expenses, limitations on scalability, and possible over-processing effects, requiring further improvement for industrial applications. This chapter provides a comprehensive overview of the role of microfluidization process in dairy processing as well as dairy analogues, highlighting its potential to revolutionize the food industry by enhancing product quality, functionality, and consumer appeal.