Worldwide, there has been growing interest in the research, development, and commercialization of functional bioactive components and nutraceuticals. As a result of consumer awareness of the relationship between diet, health, and disease, the consumption of plant-derived bioactive components has recently increased in the past two decades. Phytochemicals are bioactive nutrient plant chemicals in fruits, vegetables, grains, and other plant foods that may provide desirable health benefits beyond essential nutrition. They may reduce the risk of major chronic diseases, cardiovascular diseases, cancer, osteoporosis, diabetes, high blood pressure, and psychotic diseases and have antioxidant, antimicrobial, and antifungal properties, cholesterol-lowering, antithrombotic, or anti-inflammatory effects. Phytochemicals have been recently studied and explored for various purposes, such as pharmaceuticals, agrochemicals, flavors, fragrances, coloring agents, biopesticides, and food additives. These compounds are known as secondary metabolites and are commonly classified as polyphenols, terpenoids (terpenes), tocotrienols and tocopherols, carotenoids, alkaloids and other nitrogen-containing metabolites, stilbenes and lignans, phenolic acids, and glucosinates. Thus, this chapter aims to define the general chemistry, classification, and essential sources of phytochemicals, as well as describe the potential application of phytochemicals in the food and nutraceuticals industry, explaining the main properties of interest of the different compounds. Finally, the leading technologies involving micro and nanoencapsulation of phytochemicals are extensively detailed to protect them against degradation and enhance their solubility, bioavailability, and better applicability in the pharmaceutical, food, and nutraceutical industry. The main challenges and perspectives are detailed.