Microgreens, harvested at the cotyledon stage of plant development, represent a concentrated source of phytonutrients, pigments, and bioactive compounds, positioning them as a novel ingredient in the advancement of functional and value-added food systems. Their incorporation into a wide range of foods aligns with consumer preferences for natural and minimally processed components while simultaneously improving the nutritional and therapeutic value of the final products. Preservation of their bioactive ingredients is achieved through advanced drying techniques such as freeze drying, hot air drying, and dehydration, enabling their application in baked goods, fortified beverages, powdered blends, and health snacks. Moreover, microgreens serve as a promising source for the extraction of nutraceutical compounds, facilitating the development of targeted functional formulations with potential health benefits. Beyond their role in nutrition, microgreens exhibit considerable potential in cosmetic and personal care applications, attributed to their rich antioxidant and anti-inflammatory properties. Modern packaging technologies, such as nano-packaging, intelligent systems, and modified atmosphere packaging (MAP), greatly increase shelf life and preserve quality. Market acceptance depends on following hygienic procedures, obtaining regulatory approvals, and conducting an accurate shelf-life assessment to ensure product safety and compliance. The market for goods based on microgreens is expanding due to rising consumer awareness of sustainability and health issues. With the use of strong branding and labeling techniques, there are opportunities in both domestic and international markets. Wider implementation is still hampered by issues like post-harvest perishability, regulatory loopholes, and technological restrictions. Research-driven innovation has promise for the future. This includes the creation of innovative product formats, efficient processing techniques, and standardized safety and quality standards. A viable route to sustainable and health-conscious food systems is the investigation of underused microgreen species and their incorporation into various product categories.