Excessive consumption of ultra-processed food (UPF) is a global health concern as-sociated with an increased incidence of non-communicable diseases. UPFs are characterized by their extensive industrial processing and high content of additives, preservatives, chemicals, and artificial ingredients that are used to mask defects or inferior ingredients of end food products, presenting a multifaceted challenge to contemporary society. Exposure assessment showed that almost 50% to 30% of the energy consumption per day comes from UPFs. The more processed a food is, the less likely it is to be healthy and nutritious. UPFs affect human health by increasing the risk of obesity, heart disease, cancer, depression, diabetes, etc., as these foods are typically made up of a large number of preservatives, high content of fats, sodium, and sugars, and low contents of protein, fiber, and potassium. The ingredients required for the production of UPFs are commonly derived from intensive monoculture and livestock of raw foods. This, in turn, exerts imminent effects on agriculture, biodiversity, and the global food system by altering the bioavailability of nutrients within agricultural soil, thereby increasing the dependency on ferti-lizers and insecticides. Recent studies have shown that over-consumption of UPF has an effect on culinary traditions, loss of biodiversity, human well-being, and food system sustainability. Therefore, for better food system sustainability, the consumption of UPFs should be reduced, and we should move toward minimal processing technologies, preferably for seasonal and or-ganic local products. Based on available data, there is an urgent need to implement policies and regulations for the agro-food industry to include nutritional and environmental criteria. This review explains the different dimensions of UPFs in relation to health, nutrition, environment, current challenges, future innovations, and wider sustainability concerns.