Hydrocolloids in foods play a vital role in developing food systems with enhanced rheology, quality, organoleptic properties and nutritional value in food industry. Hydrocolloids possess the ability to modify viscosity and texture of a food system. Modification of viscosity and texture in a food will directly affect for the sensory attributes of a food product. Enhancement of these attributes leads to increased consumer acceptance towards the developed food product. Hydrocolloids of natural, semi-synthetic and synthetic origin could be used in the food industry. However, natural hydrocolloids are most preferred due to their inherent benefits. Hydrocolloids have the possibility to function as, thickeners, gelling agents, emulsifiers and stabilizers while they also have applications in development of edible films and edible coating formulations. Beside these inherent functional properties, hydrocolloids have become attractive due to their dietary fibre aspect which provide a wide array of health benefits to the consumer. Hence, hydrocolloids act as health promoters by reducing the risk of cardiovascular diseases, reducing the risk of obesity, regulating glycemic response and maintaining colonic health. This review provides a discussion on food hydrocolloids, their basic functionality, properties and applications in food industry.Graphical abstract