•Insight on the mechanism of cold plasma interaction with food components was provided.•The reaction involved in enhancement/degradation of each property were discussed.•Major modifications occur due to oxidative breakdown and new compounds synthesis.•Concise elucidation provided on food enzymes, proteins, allergens, and anti-nutrients.•Changes in color, flavor, aroma, and texture of plasma treated foods were highlighted. Cold plasma processing is a technique that uses electricity and reactive carrier gases, such as oxygen, nitrogen, or helium, to inactivate enzymes, destroy microorganisms, preserve food, and maintain quality without employing chemical antimicrobial agents.The review collates the latest information on the interaction mechanism and impact of non-thermal plasma, as an emerging processing technology, on selected physical properties, low-molecular-weight functional components, and bioactive properties of food. Significant changes observed in the physicochemical and functional properties. For example, changes in pH, total soluble solids, water and oil absorption capacities, sensory properties such as color, aroma, and texture, bioactive components (e.g., polyphenols, flavonoids, and antioxidants), and food enzymes, antinutrients, and allergens were elaborated in the present manuscript. It was highlighted that the plasma reactive species result in both constructive and antagonistic outcomes on specific food components, and the associated mechanism was different in each case. However, the design's versatility, characteristic non-thermal nature, better economic standards, and safer environmental factors offer matchless benefits for cold plasma over conventional processing methods. Even so, a thorough insight on the impact of cold plasma on functional and bioactive food constituents is still a subject of imminent research and is imperative for its broad recognition as a modern non-conventional processing technique.