Delactosed permeate (DLP) is the co-product generated during the separation of pre-crystallised lactose from milk and whey permeates. DLP production has grown with the increased production of high protein content ingredients such as whey protein concentrates and isolates. Although DLP is nutritionally rich, with approximately 0.5-1.5, 68-70, 9-10 and 8-9 g/100 g dry matter of protein, total sugars, total mineral and organic acids, respectively, it is still currently underutilised, mostly for animal feed or energy production. There are a number of novel, promising and sustainable DLP-derived food and non-food applications which are the subject of current research. Therefore, there exists the opportunity to exploit this dairy co-product in the development of new value-added ingredients. In this comprehensive review, DLP production, processing challenges and potential applications are discussed, along with identification and assessment of selected strategies for the valorisation of DLP.