Steam explosion technology is an emerging pretreatment method that has shown great promise for food processing due to its ability to efficiently destroy the natural barrier structure of materials. This narrative review summarizes the principle of steam explosion technology, its similarities and differences with traditional screw extrusion technology, and the factors that affect the technology. In addition, we reviewed the applications in food processing by-products in recent years. The results of the current study indicate that moderate steam explosion treatment can improve the quality and extraction rate of the target products. Finally, we provided an outlook on the development of steam explosion technology with a reference for a wider application of this technology in the food processing field.