Due to its abundance in various nutrients and bioactive substances including oil, fatty acids, proteins, peptides, fibre, lignans, carbs, mucilage, and micronutrients, flaxseed (Linum usitatissimum L.) has become well recognised as a health food. These components provide flaxseed a wide range of advantageous qualities that enable its usage in a variety of goods, including nutraceuticals, food items, cosmetics, and biomaterials. Because of the more recent consumer trend of relying more heavily on a plant-based diet to meet their nutritional needs—a diet that is thought to be hypoallergenic, more environmentally friendly, sustainable, and compassionate—the significance of these flaxseed components has also increased in modern times. Recent research have clarified the function of flaxseed compounds in the maintenance of a healthy gut microbiota composition, prevention, and management of several illnesses, further emphasising its significance as a potent nutritional therapy. Numerous studies have previously discussed the nutritional and physiological benefits of flaxseed, but no review paper has ever been written about the utilisation of specific flaxseed components to enhance the technological functionality of meals.