The milk fat globule membrane (MFGM) is a complex structure that surrounds the surface of fat globules in the milk of mammals. The MFGM is rich in bioactive compounds such as phospholipids, glycoproteins, and sphingolipids. Recent research highlights its important role in human health, particularly in infant nutrition, where it contributes to cognitive development, immune function, and gastrointestinal health. This review article examines the variability in commercial MFGM ingredients derived from dairy sources, detailing the impact of processes used to extrapolate the bioactive rich fractions from the MFGM. The potential applications of MFGM in food products, especially infant formulas, are emphasized, showcasing its ability to improve nutritional outcomes. Furthermore, the review discusses clinical studies that demonstrate the health benefits associated with MFGM supplementation, including enhanced cognitive performance and reduced incidence of infections in infants. Some of the underlying mechanisms behind the health-enhancing effects are elucidated in this review. Overall, this review underscores the importance of MFGM as a valuable bioactive ingredient in promoting health and development in early life nutrition.