Flaxseed is the richest plant source of omega-3 fatty acid (α-linolenic acid) and the phytohormone lignans. It is also an essential source of high-quality protein and dietary fiber. Additionally, flaxseed has potential to be a source of phenolic compounds. Because of the beneficial physiological effects of its components, this seed is considered a functional food. It can contribute to the reduction of several diseases such as diabetes mellitus, arteriosclerosis and cancer. Food products and processing with regards to flaxseed are presented in this article. The article also presents some promising patents on food applications for flaxseed and its components. In addition, some potential opportunity areas are also discussed along with the impact of the use of this seed and its components in foods.