Background:　Since　time　immemorial,　natural　active　compounds　including　essential　oils　(EOs)　and　their　components　have　been　used　due　to　their　flavor　and　fragrance.　Out　of　3000　known　varieties,　300　are　commercially　utilized　for　the　food　and　pharmaceutical　industries.　Scope　and　approach:　In　recent　years,　studies　on　EOs　have　enormously　increased　owing　to　their　remarkable　biological　activities　and　health　benefits.　As　a　result,　their　pharmacological　attributes　have　played　an　immense　role　to　identify　natural　and　safe　alternative　therapeutics　to　extend　their　industrial　applications.　Key　findings　and　conclusions:　This　review　covers　the　sources　and　composition　of　EOs,　recent　progress　in　their　extraction　methods,　factors　affecting　their　quality　and　yield,　their　most　important　activities,　such　as　antioxidant　and　antimicrobial　activities　as　well　as　their　mechanisms　of　action.　Besides,　the　importance　of　EOs　in　food,　biomedicine,　and　agricultural　industries　is　also　highlighted.　For　the　food　industrial　applications,　we　mainly　aimed　at　the　incorporation　of　EOs　as　such　or　as　nanoemulsions　into　active　or　smart　packaging　with　a　particular　emphasis　on　the　food　preservation　and　shelf-life　extension　of　food　products.