Legumes, an essential component of staple diets, hold a prominent place in global cuisines. Soybean stands out as a widely cultivated legume and is valued for its high protein content, dietary fiber, and rich micronutrients. Several varieties of soybean are available, of which black and yellow varieties show dominance in varied countries and cultures. Over time, the cultivation and consumption of black soybeans have markedly reduced compared to the yellow variety. Despite its rich nutritional and therapeutic indices, it has lost its usage over time. Traditionally, it was utilized in oriental medicine for detoxification and anti‐inflammatory potential. However, the antinutrients present in black soybean limit its utilization in the food sector due to their interference with overall nutrient absorption. Several studies in the last few decades have focused on reducing the content of antinutritional factors. However, the information on the use of different processing techniques, both singly and in blends, to reduce antinutrients and enhance the bioaccessibility, bioavailability, and bioactivity of bioactive compounds and varied nutrients is limited and fragmented. Furthermore, studies have highlighted black soybeans’ protective effects against various degenerative diseases. However, the studies on the effect of processing to enhance its antioxidative properties to make them a sought‐after food commodity with nutraceutical potential and therapeutic efficacy are limited and widely scattered. The review aims to consolidate knowledge of diverse processing methods to improve their nutritional and bioactive profile for wider applications in the food and pharmaceutical industries. Further, it has also highlighted its nutraceutical properties for developing varied functional foods against degenerative diseases to have better therapeutic efficacy.