Lavender is in the research spotlight due to its increasing economic importance, while market demand is expected to continue to grow. Among the hundreds of essential-oil-bearing plants, Lavandula angustifolia Mill. remains one of the most valuable. This paper explores the lavender chain timeline from crop to products, examining the expanding knowledge on the characteristics, phytochemical profile and functional potential of lavender that could lead to new products and uses. Lavender crops can be expanded without competing for productive land, instead using marginal, contaminated or unproductive land. A novel cultivation trend proposes leveraging agri-background biodiversity, arbuscular mycorrhiza and the natural enemies of pests for healthy crops. Together with breeding efforts targeting highly performant genotypes with complex volatile profiles coupled with resistance to specific biotic (particularly Phytoplasma) and abiotic (salt, heavy metals) stressors, industry could have a steady supply of high-quality raw material. Besides the expansion of the uses of essential oil in cosmetics, pharmaceuticals, food and environmental and agri-applications, novel channels have appeared for the use of the solid by-product, which is rich in polyphenols and polysaccharides; these channels have the potential to create additional streams of value. The stabilization and optimization of techno-functional delivery systems through the encapsulation of essential oil can extend shelf-life and enhance biological activity efficiency.