This review delves into using natural antimicrobials in the dairy industry and examines various sources of these compounds, including microbial, plant, and animal sources. It discusses the mechanisms by which they inhibit microbial growth, for example, by binding to the cell wall’s precursor molecule of the target microorganism, consequently inhibiting its biosynthesis, and interfering in the molecule transport mechanism, leading to cell death. In general, they prove to be effective against the main pathogens and spoilage found in food, such as Escherichia coli, Staphylococcus aureus, Bacillus spp., Salmonella spp., mold, and yeast. Moreover, this review explores encapsulation technology as a promising approach for increasing the viability of natural antimicrobials against unfavorable conditions such as pH, temperature, and oxygen exposure. Finally, this review examines the benefits and challenges of using natural antimicrobials in dairy products. While natural antimicrobials offer several advantages, including improved safety, quality, and sensory properties of dairy products, it is crucial to be aware of the challenges associated with their use, such as potential allergenicity, regulatory requirements, and consumer perception. This review concludes by emphasizing the need for further research to identify and develop effective and safe natural antimicrobials for the dairy industry to ensure the quality and safety of dairy products for consumers.