Recently, consumers have become increasingly interested in natural, health‐promoting, and chronic disease‐preventing medicine and food homology (MFH). There has been accumulating evidence that many herbal medicines, including MFH, are biologically active due to their biotransformation through the intestinal microbiota. The emphasis of scientific investigation has moved from the functionally active role of MFH to the more subtle role of biotransformation of the active ingredients in probiotic‐fermented MFH and their health benefits. This review provides an overview of the current status of research on probiotic‐fermented MFH. Probiotics degrade toxins and anti‐nutritional factors in MFH, improve the flavor of MFH, and increase its bioactive components through their transformative effects. Moreover, MFH can provide a material base for the growth of probiotics and promote the production of their metabolites. In addition, the health benefits of probiotic‐fermented MFH in recent years, including antimicrobial, antioxidant, anti‐inflammatory, anti‐neurodegenerative, skin‐protective, and gut microbiome‐modulating effects, are summarized, and the health risks associated with them are also described. Finally, the future development of probiotic‐fermented MFH is prospected in combination with modern development technologies, such as high‐throughput screening technology, synthetic biology technology, and database construction technology. Overall, probiotic‐fermented MFH has the potential to be used in functional food for preventing and improving people's health. In the future, personalized functional foods can be expected based on synthetic biology technology and a database on the functional role of probiotic‐fermented MFH.