Display omitted •The functional beveragesare excellent delivering means for nutrients and bioactive molecules.•Use of medicinal and aromatic plants in the production of functional beverages has become increasingly popular due to specific content ofstructurally diverse bioactive molecules withnumerous confirmed healthbenefitsand specific sensory properties.•The quality of plant extracts and essential oils depends on quality of raw materials and applied extraction techniques.•Rising consumer demand for natural ingredients provides numerous opportunities for the fortification and development of new categories of functional beverages based on medicinal and aromatic plants. The functional beverages (FBs) are an important segment of functional food products due to health benefits they provide and their appealing sensory characteristics, suitability and affordability. FBs market offers many opportunities for new product development (nutraceuticals, colorants, plant-based medicines and products) with desirable and effective composition ofnutrients and bioactive molecules (BAMs) aimed to deliver health benefits and improve human well-being. Recently, the use of medicinal and aromatic plants (MAPs) in the production of FBs has become increasingly popular due to specific content of nutrients (amino and fatty acids) and BAMs (volatile and non-volatile) attributed to the biological effects and health benefits. BAMs are stored in leaves, flowers, fruits, seeds, barks and roots, and they mostly include phenolics (phenolic acids, flavonoids, tanins, anthocyanins, lignans and stilbenes), essential oils (EOs), terpenoids, alkaloids, phytosterols and saponins. The aromatic features of MAPs are mainly related to volatile compounds of EOs, but the presence of non-volatile compounds, such as phenolics, also contributes to the specific sensory properties. Phytochemical profiling of plant species containing specific and complex mixtures of BAMs, provides numerous opportunities for the development of new categories of FBs, but also opens new challenges in their isolation using conventional and advanced extraction techniques, as well as determination of potential biological effects. This review summarizes the categories of the most common FBs, BAMs from selected MAPs and their biological effects, extraction techniques suitable for production of plant extracts and EOs, product quality and prediction trends, and several directions towards future research on FBs development strategies.