Nowadays, increase in a health-conscious population, interest in the nutritional properties and bioactive components of foods has also increased. Vegetable oils can be consumed in both virgin and refined forms, but there is a growing interest in the consumption of virgin oils as functional foods. Refining includes the elimination of unwanted components while maintaining essential elements. However, due to severe conditions such as high temperatures and harsh chemicals of the refining process, removal of desirable components and formation of unwanted components are sometimes unavoidable, which can cause serious health issues. The aim of this work is to provide an overview of nutritional and health aspects of refined and unrefined vegetable oils. Their role in causing several diseases and health issues, such as cardiovascular diseases, obesity, liver disorders, renal disorders, inflammation, diabetes, cancer, osteoporosis, neurodegenerative disorders, allergies, and edema are investigated. Moreover, it is known that virgin oils have beneficial effects on gut microbiota which affect the nervous system and body health, as well as regulating inflammatory and metabolic changes; thus, including virgin oils in the diet is highly suggested. This review is a comprehensive collection of reports on the impact of refining on the nutritional and health effects of vegetable oils.