Newer variants of milk powders and milk-based powders are being produced are looking for prospective end users. Powders possess physical and functional properties that are of significance in its usage notably powder structure, particle size distribution, powder density, bulk density, particle density, occluded air, interstitial air, flowability, rehydration (wettability, sinkability, dispersibility, solubility), hygroscopicity, heat stability, emulsifying ability, water activity, stickiness, caking, and others. Some of the functional properties of significance to milk powders and milk-based powders are discussed in this review. Applications with regard to specific milk powders for reconstituted cheese making, coffee creamers, and those suited for milk chocolate and for the baking industry are described.