Starch is, after cellulose, the most abundant organic compound in nature. Modification of starch is carried out to enhance the positive attributes and to eliminate the shortcomings of the native starches. Various methods have been developed to produce a range of modified starches with a variety of characteristics and applications. Physically modified starches are simple and inexpensive because they can be produced without chemicals or even biological agents. In contrast, chemical modification is possible due to ubiquitous hydroxyl groups in starches that have been exploited for over a century, principally in the preparation of starch esters and ethers, but also in more subtle alterations, e.g., in order to tune the structure of starches for specific applications. All these techniques tend to alter the highly flexible starch polymer with changed physicochemical properties and modified structural attributes of high technological value for the food and non-food industries. Modification of starch is an ever evolving industry with numerous possibilities to generate novel starches which includes new functional and value added properties as demanded by the industry. This review aims to summarize the latest developments and recent knowledge regarding physically and chemically modified starches. This paper covers physical modification methods (pre-gelatinization, hydrothermal, and non-thermal processes), some chemical modifications and a combination of both.