Citrus is one of the main fruits processed worldwide, producing a lot of industrial by-products. As the main part of citrus "residue", citrus peels have a wide application prospect. They could not only be directly used to produce various food products, but also be used as promising biofuels to produce ethanol and methane. Additionally, functional components (flavonoids, limonoids, alkaloids, essential oils and pectin) extracted from citrus peels have been related to the improvement of human health against active oxygen, inflammatory, cancer and metabolic disorders. Therefore, it is clear that the citrus peels have great potential to be developed into useful functional foods, medicines and biofuels. This review systematically summarizes the recent advances in current uses, processing, bioactive components and biological properties of citrus peels. A better understanding of citrus peels may provide reference for making full use of it.