Phytochemicals are bioactive compounds found in plants that play a key role in promoting health and preventing diseases. Present in fruits, vegetables, grains, and seed oils, these compounds are considered safe for consumption due to the co‐evolution and adaptation between mammals and plants. Due to their wide‐ranging biological effects, they have attracted considerable research interest. This comprehensive review explores the mechanisms of action, health benefits, and applications of dietary phytochemicals, with a particular focus on key groups such as polyphenols, flavonoids, and carotenoids. Research shows that dietary phytochemicals interact with nuclear and membrane receptors, influence metabolic pathways, and affect epigenetic modifications. Our review highlights the broad range of biological activities of these compounds, including antioxidant, antibacterial, anti‐inflammatory, anti‐diabetic, and anticancer effects, all of which contribute to their health‐promoting properties. Clinical evidence supports their role in the prevention and management of diseases such as cardiovascular disorders, metabolic conditions, and cancer, with diets rich in phytochemicals being linked to a lower risk of disease. Phytochemicals are also at the cutting edge of applications in food preservation, dietary supplements, and emerging medical treatments. Additionally, we identified advancements in extraction and identification techniques, particularly in metabolomics, which further enhance their applications in these areas. Despite their promising benefits, challenges such as bioavailability, regulatory barriers, and the need for robust clinical trials persist. However, innovative delivery systems like nanoparticles, liposomes, and encapsulation offer potential solutions to enhance bioavailability by improving absorption and stability. The review concludes by emphasizing the potential of personalized nutrition and combination therapies to enhance the health benefits of dietary phytochemicals while stressing the need for advancements in extraction methods, clinical trials, and bioavailability.