Food security issues are becoming more pressing due to the world's rapid population expansion and climate change, which also drive up demand for nutrient-dense commodities like meat and cereals. Conventional agricultural practices, which depend on pesticides, fertilizers, and antibiotics, are exacerbating environmental problems, such as antibiotic resistance. Precision fermentation has become a game-changing technique that uses microorganisms to create high-value food ingredients more efficiently and with less negative environmental impact. This method optimizes microbial strains and improves manufacturing processes by utilizing cutting-edge technologies like metabolic engineering and next-generation sequencing. Crucial microorganisms in this technique are filamentous fungi and yeasts, which produce a wide range of products from lipids to proteins. To support microbial growth, an appropriate media formulation is crucial, and downstream processing guarantees the high-quality product recovery. The precise fermentation industry is expanding due to constant advancements and investments, despite obstacles including high production costs and strict regulations. The increased potential of precise fermentation is demonstrated by the commercial trends, which include large investments and the emergence of profitable companies. This review aims to discuss how Precision fermentation has the potential to completely transform the food production industry by providing sustainable alternatives and strengthening the foundation of an increasingly robust and effective food system as well as mentioned the challenges of its implementation.