Pectin is a branched heteropolysaccharide consisting of long-chain galacturonan segments and other neutral sugars such as rhamnose, arabinose, galactose, and xylose. It forms a matrix with celluloses and hemicelluloses and contributes to the cell structure. Due to the presence of several sugar moieties and different levels of methyl esterification, pectin does not have defined molecular weight like other polysaccharides. Pectin has wide applications. It is used as emulsifier, gelling agent, thickener, stabilizer, and fat or sugar replacer in low-calorie foods. Pectin and pectinderived oligosaccharides can also be used as an important ingredient in functional foods. In recent past, a new application envisaged for pectin polymers as edible films or coating. These films act as natural barrier for exchange of moisture, gases, lipids, and volatiles between food and environment, and protect fruits and vegetable from microbial contamination. The degree of esterification of pectin and other structural modifications defines the functional properties. Herein, various functional properties of pectin in relation to food processing and packaging are discussed.