Fats and oils are essential nutrients for humans and animals. They are the most concentrated source of energy by contributing 9 kcal/g lipid, serve as carrier of fatsoluble vitamins and provide essential fatty acids. Fats and oils give flavor and taste to the foods, and also serve as a heat transfer medium. The lipid molecules undergo different chemical reactions during processing starting from separation from their raw sources to the storage. Chemical changes of lipids occurring during processing are numerous and can be desirable, undesirable, of questionable consequence, or a combination thereof. This review discusses the chemical changes of lipids that occur during various types of processing. Specific changes in the minor constituents of lipids are also included.