Recently, a novel technique for extraction of functional thermally sensitive bioactive components from food has been developed due to its green efficacy (no toxic chemicals) and cost effectiveness. Cloud point extraction (CPE) is one of the such best alternative techniques that can be used for extraction of wide range of organic and inorganic components using green surfactants. It is a simple, rapid and inexpensive extraction technique which involves clustering of non-ionic surfactant monomers to form a hydrophobic core (micelle), which then entraps the hydrophobic bioactive compounds within it. CPE can be applied for extraction of bioactives from food processing waste as well as separation and purification of proteins. Besides that, research has received special attention on sample preparation for analysis of food constituents in the last decade. The scope of CPE is very vast in these sectors because of the advantages of CPE over other methods. This review deals with significance of CPE method and their potential green applications in food processing.