Dragon fruit (DF) or Pitaya (Hylocereus spp.) a member of Cactaceae family is gaining popularity in the market for consumption of fresh fruit due to its highly attractive fruit color with nutritional and immense bioactive potential that reduces blood sugar level, cholesterol, prevention of liver injuries, cancer, and so forth. In commercial market valorized products of DFs are available. The processing of edible and nonedible parts of DF is of immense significance to prepare nutritionally rich value‐added products and concurrently reducing the challenges occurring due to waste generation and spoilage. This review paper provides detailed insights of DF processing into different value‐added products, its medicinal benefits, bioactive potential, and the physico‐chemical changes occurring in DF during processing such as drying, fermentation, extraction, and so forth.