Cantharellus cibarius (CC) is a culinary mushroom with significant commercial potential due to its diverse components and bioactive functions. CC is rich in carbohydrates, proteins, minerals, vitamins, and aroma compounds while being low in fat and calories. Moreover, CC contains an abundance of bioactive substances including phenolic compounds, vitamin precursors, and indole derivatives. Numerous studies have claimed that CC has diverse functions such as antioxidant, antimicrobial, immunoregulation, anti-inflammatory, antitumor, neuroprotective, antidiabetic, and prebiotic effects in in vivo or in vitro settings. In addition, a variety of thermal, physical, chemical, and biological treatment methods have been investigated for the processing and preservation of CC. Consequently, this study aims to present a comprehensive review of the chemical composition, health benefits, and processing techniques of CC. Furthermore, the issue of heavy metal accumulation in CC has been indicated and discussed. The study highlights the potential of CC as a functional food in the future while providing valuable insights for future research and identifying areas requiring further investigation.