This document defines functional foods as natural or processed foods that provide health benefits beyond basic nutrition. It discusses the history of functional foods beginning in Japan in the 1980s and provides examples of classifications including by source, nutrients, non-nutrients, and target organ. The document outlines how foods become functional by eliminating antinutrients, increasing beneficial components, or adding new components. It provides examples of foods that are sources of vitamins, minerals, proteins, peptides, prebiotics, probiotics, and synbiotics which serve functional purposes like supporting bone health, metabolism, immunity, and gut microbiome.