During the last decade, consumers’ approach to healthy foods has changed dramatically, and today enhancing the health span of consumers through consumption of healthy food is more important than simply enhancing their life span. Rising medical costs are the prime factor forcing people to find cheaper and effective means of protecting their health. This fact has led to an increase in consumers’ interest in functional foods. Dairy products occupy a significant space in the functional foods market and dairy-based functional beverages are a growing segment of this sector. This article reviews recent scientific, technological and commercial developments in the functional dairy-based beverage sector.