Food hydrocolloids are multifunctional natural substances that are being exploited to create a new generation of functional foods that improve health and well-being. Pharmaceutical and culinary formulations play a crucial role in rheology, tribology, and intuition. According to current research, hydrocolloids have the potential to tailor nutritional value and deliver therapeutic benefits by lowering plasma cholesterol, postprandial glucose, glycemic response, insulin secretion, and preventing colon cancer by controlling meal transit, digestion, and gastric emptying. They also enhance the bioavailability of specific bioactive moieties and drugs by delivering them to the gastrointestinal tract in a regulated and targeted manner. The use of food hydrocolloids, particularly proteins and polysaccharides, as viscosity modifiers, gelling, coating, stabilizing agents, and emulsifiers in the drug delivery system and the nutraceutical potential utility of food colloids as functional components, are discussed in this article.