This document discusses functional foods and nutraceuticals. It defines functional foods as foods that provide specific health benefits beyond basic nutrition. Nutraceuticals are foods or food components that have medical or health benefits, including disease prevention or treatment. Examples of functional components in foods are given, along with their potential health benefits and sources. The document also discusses probiotic foods, prebiotic foods, and plant stanols/sterols, and their relationships to functional foods and nutraceuticals. Classification systems for nutraceuticals are presented based on their natural sources and chemical constituents.