In the past decade, the increasing interest in healthy consumption has encouraged the development of functional products in the yogurt sector. Dairy products are extensively used in the production of functional foods because of their excellent and versatile technological properties. Among dairy products, yogurt is one of the dairy foods that has been most widely used to deliver bioactive compounds to consumers. The market features various types of functional yogurt, including probiotic, prebiotic, synbiotic, high protein, lactose free, and novel products known as easy-to-digest yogurt. The added ingredients in these products influence the structural, nutritional, and functional properties of yogurt. These effects vary depending on the chemical and biological characteristics of each ingredient. Additionally, during fermentation, the added substances can impact the number and viability of the bacteria involved, affecting the quality of the products during storage. Furthermore, the consumption of functional yogurt is associated with various health benefits. These benefits are linked not only to supporting health but also to altering the course of a disease or alleviating symptoms. This review article discusses functional yogurt and its health effects, incorporating recent studies.