Background Increased awareness of the relationship between certain components in food beyond basic nutrition and health has generated interest in the production and consumption. Functional foods owe much of their health benefits to the presence of bioactive components. Despite their importance, their poor stability, solubility, and bioavailability may require the use of different strategies including nano-delivery systems (NDS) to sustain delivery and protection during handling, storage, and ingestion. Moreover, increasing consumer trend for non-animal sourced ingredients and interest in sustainable production invigorate the need to evaluate the utility of plant-based NDS. Method In the present study, 129 articles were selected after screening from Google Scholar searches using key terms from current literature. Scope This review provides an overview of current trends in the use of bioactive compounds as health-promoting ingredients in functional foods and the main methods used to stabilize these components. The use of plant proteins as carriers in NDS for bioactive compounds and the merits and challenges of this approach are also explored. Finally, the review discusses the application of protein-based NDS in food product development and highlights challenges and opportunities for future research. Key Findings Plant-based NDS is gaining recognition in food research and industry for their role in improving the shelf life and bioavailability of bioactives. However, concerns about safety and possible toxicity limit their widespread application. Future research efforts that focus on mitigating or enhancing their safety for food applications is warranted.