Lactobionic acid (LBA) is a bionic acid naturally found in the “Caspian Sea yogurt” and chemically constituted of a gluconic acid bonded to a galactose. The compound is known for its numerous proven attributes as an antioxidant, chelator, and moisturizer agent. There is a growing interest of the academic community and industry research sectors in the application of LBA as a food ingredient. Thus, this review describes the current methods of LBA production, patents related, general applications and regulations, research statistics, future prospects, and an overview of the challenges faced by the food industry to incorporate the acid in their products. Studies associated to food application and human intake are scarce in the literature. To date, they account for only a small amount of all available research papers and patents on the subject, which is due to LBA prohibitions despite the approval of its salt (calcium lactobionate) and the lack of regulation in most countries. Further studies on the safety of consumption should be carried out in coming years in order to elucidate its toxicological aspects and to extend the technological possibilities of the food processing industry.