Phytosterols, natural compounds found in plants, have gained significant attention for their physiological functions and potential applications in health and food. This review summarizes the current understanding of phytosterols, including their extraction methods, physiological effects, and applications in functional foods. Phytosterols are known for their cholesterol-lowering, anticancer, anti-inflammatory, and immunomodulatory properties. They can reduce low-density lipoprotein cholesterol (LDL-C) by inhibiting cholesterol absorption and increasing its excretion. Additionally, phytosterols exhibit anticancer effects by inhibiting tumor growth, angiogenesis, and cancer cell proliferation. They also possess anti-inflammatory properties by modulating inflammatory pathways and reducing the production of inflammatory mediators. Phytosterols have antioxidant activity, helping to reduce oxidative stress and protect cells from damage. Furthermore, they can modulate immune responses, enhancing T-cell activity and natural killer cell function. Phytosterols are extracted from various plant sources, including vegetable oils, nuts, and mushrooms, using methods such as soxhlet extraction, cold pressing, and supercritical fluid extraction. The extraction process involves hydrolysis to release free phytosterols, followed by purification and analytical identification using techniques like gas chromatography and high-performance liquid chromatography. The physiological effects of phytosterols are influenced by their structure, with different phytosterols exhibiting varying degrees of bioactivity. In the food industry, phytosterols are used in functional foods to lower cholesterol levels, as natural antioxidants, and as fat substitutes. They are also being explored for their potential in pharmaceutical applications, including drug delivery systems and as components in skincare products. However, challenges such as phytosterol oxidation products and low bioavailability remain, requiring further research and chemical modifications to enhance their stability and effectiveness. Overall, phytosterols show great promise in improving human health and have broad applications in food, pharmaceutical, and cosmetic industries.Phytosterols, natural compounds found in plants, have gained significant attention for their physiological functions and potential applications in health and food. This review summarizes the current understanding of phytosterols, including their extraction methods, physiological effects, and applications in functional foods. Phytosterols are known for their cholesterol-lowering, anticancer, anti-inflammatory, and immunomodulatory properties. They can reduce low-density lipoprotein cholesterol (LDL-C) by inhibiting cholesterol absorption and increasing its excretion. Additionally, phytosterols exhibit anticancer effects by inhibiting tumor growth, angiogenesis, and cancer cell proliferation. They also possess anti-inflammatory properties by modulating inflammatory pathways and reducing the production of inflammatory mediators. Phytosterols have antioxidant activity, helping to reduce oxidative stress and protect cells from damage. Furthermore, they can modulate immune responses, enhancing T-cell activity and natural killer cell function. Phytosterols are extracted from various plant sources, including vegetable oils, nuts, and mushrooms, using methods such as soxhlet extraction, cold pressing, and supercritical fluid extraction. The extraction process involves hydrolysis to release free phytosterols, followed by purification and analytical identification using techniques like gas chromatography and high-performance liquid chromatography. The physiological effects of phytosterols are influenced by their structure, with different phytosterols exhibiting varying degrees of bioactivity. In the food industry, phytosterols are used in functional foods to lower cholesterol levels, as natural antioxidants, and as fat substitutes. They are also being explored for their potential in pharmaceutical applications, including drug delivery systems and as components in skincare products. However, challenges such as phytosterol oxidation products and low bioavailability remain, requiring further research and chemical modifications to enhance their stability and effectiveness. Overall, phytosterols show great promise in improving human health and have broad applications in food, pharmaceutical, and cosmetic industries.