Bioactive compounds in functional foods are consumed daily, often without a full understanding of their health benefits. Integrating Ayurvedic knowledge into our diets can help prevent and manage chronic diseases and metabolic syndromes like diabetes and diabetic neuropathy. These bioactive compounds, including vitamins, polyphenols, antioxidants, steroids, alkaloids, tannins, and saponins, have demonstrated significant antioxidant, anti-inflammatory, and metabolic benefits, aiding in disease prevention and management. Functional foods with supplemented bioactive molecules not only meet basic nutritional requirements but also possess medicinal properties that treat the root causes of the majority of chronic diseases. Plant-based medicines, which have been known since ancient and traditional medicine, play an important role in the prevention or mitigation of oxidative stress, inflammation, and improved metabolic health. Compounds such as ellagic acid from amla and trigonelline from fenugreek modulate blood glucose levels, reduce inflammation, and alleviate neuropathic pain. In diabetic neuropathy, these bioactive compounds have shown promising neuroprotective effects, contributing to pain modulation and nerve regeneration. Besides, various preclinical research, both in vivo and in vitro, have presented a significant amount of evidence pointing out and stressing the importance of these factors on the health of the cells. Besides that, they also play a crucial role in the fight against the development of various diabetic complications, diabetic neuropathy among them, among many others. The therapeutic potential of bioactive substances and functional foods in the treatment of diabetic neuropathy is particularly highlighted in this chapter. It thoroughly examines the different ways in which these substances work as well as their pharmacological benefits, which can be quite important for people suffering from this illness. The different sources from which bioactive chemicals can be obtained are discussed in great detail. The chapter also highlights their outstanding neuroprotective and antidiabetic properties, highlighting their capacity to successfully address the intricate and multidimensional pathophysiology of diabetic peripheral neuropathy. This insight bridges traditional wisdom and modern research, offering novel perspectives on dietary interventions for managing diabetes and its complications.