•Water lilies and lotus are good source of food, nutrition and medicine.•Carbohydrate is the major sources of water lilies and lotus.•Phenolic and flavonoids are the main phytochemicals in water lilies and lotus.•Phytochemicals are responsible for health benefits of water lilies and lotus. Water lilies and lotus are regarded as good source of food, nutrition, and medicinal purposes. This review assessed scientific evidence for application of fifteen species of water lilies and lotus as functional and nutraceutical food ingredient in food and pharmaceutical industries. The nutritional value and phytochemical compounds of lotus and water lilies were reviewed. Additionally, the health benefits of water lilies and lotus as anti-inflammatory, hepato-protective, anti-hyperglycaemic, anti-hyperlipidaemic, and anticancer were highlighted. Water lilies and lotus could be commercially cultivated, harvested and processed to feed the increasing human population. Future studies should be conducted on physicochemical, thermal, rheological and pasting properties of major components i.e. starch of water lilies and lotus. Additionally, in vivo and in vitro studies should be explored to address safety, toxicity and cytotoxicity of water lilies and lotus for application in food and pharmaceutical industries. Display omitted