Hydrocolloids are widely used in many food formulations to improve quality attributes and shelf-life. The two main uses are as thickening and gelling agents. As thickening agents, they find uses in soups, gravies, salad dressings, sauces and toppings while as gelling agents, they are extensively used in products like jam, jelly, marmalade, restructured foods and low sugar/calorie gels. The role of specific hydrocolloids for thickening and for gel formation is reviewed pinpointing specific applications in food formulations and for product development.