Goat milk and dairy products have attracted more and more consumers’ attention because of their rich nutritional value and positive health benefits. Goat milk, the milk of the goat as a minor dairy species. Compared with cow milk, goat milk has higher dry matter content, better digestibility, and lower allergenicity, and is a good source of many bioactive ingredients. Therefore, goat milk can be used to manufacture health products suitable for various populations as a carrier of functional ingredients such as prebiotics and probiotics. This article reviews the cutting-edge research on the nutritional composition, functional properties and processing of goat milk, with a particular focus on the role and mechanism of action of goat milk products in the prevention and alleviation of various diseases. We hope that this review will provide a reference for the development of high-value goat milk products.