Bamboo shoots are not only rich in nutrients but also contain an array of bioactive compounds bestowing them with several health benefits. Bioactive compounds are extra-nutrient secondary metabolites with potent health-promoting effects. The main bioactive compounds in bamboo shoots are phenols, phytosterols and dietary fibres that have been proven to impart bamboo shoots with several health benefits such as improvement of bowl function and digestion, reducing serum cholesterol and prevention of diabetes, obesity, metabolic disorders, cardiovascular diseases and certain types of cancer. Phenolic compounds signify the largest group of natural antioxidants which prevent oxidative damage of various biomolecules, thereby preventing the occurrence of several chronic diseases. Phytosterols have cholesterol-reducing properties which are present both in fresh and fermented shoots. The phytosterol content in bamboo shoots is higher than the quantity present in commonly consumed vegetables and fruits. Young shoots also contain significant amount of dietary fibres which has not only health benefits but also imparts functional properties to food. With evidence provided through scientific research, the establishment of bamboo shoots as one of the important ingredients for functional food industry is inevitable.