Bioactive compounds are secondary metabolites produced during the growth and development of plants, animals, and marine organisms. Bioactive compounds are categorized into three categories, namely phenolic compounds, terpenoids and terpenes, and alkaloids. Bioactive compounds have various health benefits with functional properties like anti-inflammatory, antibacterial, anticancer, antidiabetic, antibiotic, etc. Any food being cooked or processed (canning, pasteurization, baking, roasting, steaming, freezing, drying) to reduce the post-harvest loss and to improve the quality and shelf life changes availability, accessibility, and nature of bioactive compounds because of the change in food matrix and structure. Many researchers have studied the effect of bioactive compounds on health and processing on the functional properties of bioactive compounds. This chapter comprises the sources (plant, animal, marine), health benefits, and the effect of processing on the functional properties of bioactive compounds.