Functional foods are gaining significant research attention of researchers due to their health‐endorsing properties due to their bioactive components either living cells (probiotics) or nonviable cells (prebiotics). The term “postbiotic” specifies the soluble substances, such as enzymes, peptides, teichoic acids, muropeptides derived from peptidoglycans, polysaccharides, cell surface proteins, and organic acids, that are secreted by living bacteria or released after bacterial lysis. Due to various signaling molecules which may have antioxidant, immunomodulatory, antiinflammatory, antihypertensive, and antiproliferative activities, postbiotics offer great potential to be used in pharmaceutical, food, and nutraceutical industries, to promote health and ailment prevention. This recent review is a landmark of information relevant to the production of postbiotics along with salient features to use in various fields ranging from food to immunomodulation and selective and effective therapy. It also puts forward the concept that postbiotics are way more effective than probiotics in the veterinary, food as well as medical field which ultimately helps in reducing the disease burden along with human health.