Sincere efforts of researchers are underway to understand the functionality of different fats and oils in relation to cookie quality. The quality of cookie primarily relies upon the functionality of fats and oils in cookie system which ultimately is combined result of their physical, chemical, and rheological properties. Effects of some major fats and oils such as butter, bakery fat, hydrogenated fat, lard, margarine, palm oil, sunflower oil, coconut oil, and soybean oil on the physical and sensory characteristics of cookie have been studied. Previous studies reported that fats and oils had radical contribution in cookie quality and most authors agree on the fact that different fats and oils affect the cookie quality to different extent. Furthermore, it was observed by many researchers that with oils, dough was softer and cookie spread was higher as compared with that of fats. It is important to understand the molecular basis of the difference in technological changes in cookies properties with different fats and oils. This review focuses on the current knowledge of quality determining physical, chemical, thermal, microstructural, and functional properties of fats and oils in relation to cookie dough rheology and cookie quality.