This paper systematically reviews the research progress on the nutritional and functional properties and processing characteristics of functional goat milk powder, as well as the process, influencing factors and products of the Maillard reaction. Meanwhile, it delves into the types and characteristics of Maillard reaction products (MRPs) during the processing and storage of functional goat milk powder. It elucidates the formation mechanism of MRPs and their effects on the flavor, color, quality, and safety of functional goat milk powder by examining raw material properties, processing conditions, and storage environmental factors (temperature, relative humidity and light). Furthermore, this paper proposes risk control strategies for Maillard reactions during the processing and storage of functional goat milk powder based on raw material selection, process optimization, storage conditions control, and the establishment of detection, analysis and evaluation method systems. Finally, this review concludes with an outlook on future research directions, aiming to provide scientific evidence and practical guidance for the research, safe production, and quality control of functional goat milk powder.