In this paper, degradation mechanisms of optical materials, used in the light emitting diode (LED)-based products, are reviewed. The LED lighting is one of the fastest technology shifts in human history. Lighting accounts for almost 20% of the global electrical energy use, inferring that replacement of traditional lighting sources with LEDs with higher efficiencies will have major positive implications for the global energy consumption. Organic optical materials are key components in LEDs in the sense that they control the functionality of the device and they have decisive effects on the durability and reliability of LEDs. This paper aims at describing the influences of chemical structure and service conditions on the degradation mechanisms of organic optical materials in LEDs which lead to the lumen depreciation, discolouration, and colour shift of the LED light output. The contributions of different degradation mechanisms of optical and package materials in LED-based products to the lumen depreciation and colour shift are methodically reviewed.