Oats (Avena sativa L.) have received considerable attention for their high content of dietary fibres, phytochemicals and nutritional value. It is believed that consumption of oats possesses various health benefits such as hypocholesterolaemic and anticancerous properties. Oats have also recently been considered suitable in the diet of celiac patients. Owing to their high nutritional value, oat-based food products like breads, biscuits, cookies, probiotic drinks, breakfast cereals, flakes and infant food are gaining increasing consideration. Research and development on oat and its products may be helpful in combating various diseases known to mankind. This paper provides an overview of the nutritional and health benefits provided by oats as whole grains and its value added products. It is designed to provide an insight on the processing of oats and its effect on their functional properties. The manuscript also reviews various uses of oats and its fractions for clinical and industrial purposes and in development of value added food products.