Polydextrose (PD) is a low calorie, sugar free, low glycemic carbohydrate that has a variety of functional properties including high water solubility, high glass transition temperature, prebiotic properties, good stability at elevated temperature and over a broad range of pH and is widely recognized as soluble dietary fibre. PD induces physiological effects, such as increasing fecal bulking, softening stools, decreasing fecal pH, increasing short chain fatty acid concentrations and reduces the concentration of carcinogenic substances in the colon. It also aids blood glucose homeostasis and can decrease low density lipoprotein (LDL) cholesterol and total cholesterol levels in blood serum. These functional and physiological benefits have led to considerable interest from the food industry to use PD in the development of new healthy products. PD is widely used in food applications such as baked goods, ice cream, beverages, confectionery, chocolate, yoghurt, and salad dressings, among many others. There is no maximum established limit for PD. However, good manufacturing practices (GMP) limit the quantity to the amount necessary to accomplish intended purpose in the food. This review describes the production process, chemistry, functional properties, physiological functions, food applications, safety and tolerance, and regulatory and labeling information of PD.