Plasma-activated water (PAW), the water or solutions treated with atmospheric cold plasma, is an eco-friendly technique with minimal changes in food products, making it a befitting alternative to traditional disinfection methods. Due to its potential microbicidal properties, PAW has been receiving increasing attention for applications in the food, agricultural, and biomedical fields. In this article, we aimed at presenting an overview of recent studies on the generation methods, physicochemical properties, and antimicrobial activity of PAW, as well as its application in the food industry. Specific areas were well discussed including microbial decontamination of food products, reduction of pesticide residues, meat curing, sprouts production, and disinfection of food contact materials. In addition, the factors influencing PAW efficiency were also well illustrated in detail, such as discharge parameters, types and amounts of microorganisms, characteristics of the liquid solution and food products, and treatment time. Moreover, the strategies to improve the efficacy of PAW were also presented in combination with other technologies. Furthermore, the salient drawbacks of this technology were discussed and the important areas for future research were also highlighted. Overall, the present review provides important insights for the application of PAW in the food industry.