A diet rich in fruits and vegetables has positive effects on human health, protecting against several diseases. Dandelion (Taraxacum spp.) is a dietary source of bioactive compounds such as flavonoids, phenolic acids, terpenes, inositol derivatives, carotenoids, and coumarins. Dandelion-derived phytochemicals have well-known health-beneficial properties and are used for treatment of ailments such as dyspepsia and disorders of the spleen, liver, and gallbladder. Numerous pre-clinical studies of dandelion extracts and purified compounds have shown pharmacological properties such as anti-tumor, anti-inflammatory, antioxidant, analgesic, anti-hyperglycemic, and anti-microbial activities. Dandelion is a good source of dietary fiber and shows strong bile acid binding capacity. Despite their health-promoting properties, dandelion is still an underutilized plant. Even though dandelion extract is generally recognized as safe (GRAS), its clinical application needs to be further studied to promote its usage for therapeutic purposes at appropriate doses. The present review describes the phytochemical composition and functional properties of dandelion.