The growing demands of novel food products for well-being and age related issues coupled with increasing health care expenditure has attracted global attention on prebiotics. During the end of twentieth century, a great concern was expressed for transfer of antibiotic resistance genes from animal to human through food chains leading to the concept of “preventive medication”. Xylooligosaccharides (XOS) is the only nutraceutical that can be produced from lignocellulosic biomass. Production of XOS from agricultural residues offers great scope to the nutraceutical industries as the raw material is cheap and abundantly available. The major advantages of XOS consumption, apart from selective growth stimulation of beneficial gut microflora, include reduction of blood glucose and cholesterol, reduced pro-carcinogenic enzymes in gastrointestinal tract, enhanced mineral absorption from large intestine and immune-stimulation. The sweet taste of XOS enables it to be used as an artificial sweetener. Owing to the ban on antibiotics as a feed supplement in livestock, the XOS could be future alternatives to guard gastrointestinal tract from the onslaught of pathogenic microflora. This will sustain the productivity and improve the quality of animal products to fulfil the demands of value added livestock products. Therefore, XOS could be the future sought after molecules in preventive medicine.