Fructooligosaccharides (FOSs) are non-digestible carbohydrates with functional and physiological attributes like low sweetness, non-carcinogenicity, low caloric value, prebiotic, hypolipidemic and hypocholestrolemic properties. Although fructooligosaccharides are present in trace amounts in natural foods like onions, asparagus, wheat, banana, tomato and honey, commercial production is accomplished, using microbial transferase such as fructosyl transferase or beta-fructofuranosidase. The industrial production of fructooligosaccharides (FOS) is expanding rapidly due to the food and pharmaceutical importance of these compounds. Due to its health benefits and functional properties, FOS will continue to exist in market as functional food ingredient for Product formulations.