Fruits and vegetables are the main dietary sources of carotenoids. Processing at peak harvest is necessary to reduce post-harvest losses, provide a year-round supply of a variety of plant foods, and permit distribution to places far removed from agricultural production. Processing can have both positive and negative effects on carotenoids. Carotenoid biosynthesis continues after harvest in fruits and fruit vegetables, provided that they are kept intact and the enzymes responsible for carotenogenesis are not inactivated. Attention is often focused on industrial processing, but home preparation can also cause carotenoid losses, sometimes to a greater extent. Thermal processing remains the most widely adopted food preservation technique. Traditional sun drying causes considerable carotenoid destruction. The utilization of carotenoids as colorant additives and functional ingredients in food and beverage can be problematic because of their insolubility in water, instability, and low bioavailability. In recent years, attention has centered on microencapsulation and nanoencapsulation.