Xanthan gum (XG) is an important industrial microbial exopolysaccharide. It has found applications in various industries, such as pharmaceuticals, cosmetics, paints and coatings, and wastewater treatment, but especially in the food industry. The thickening and stabilizing properties of XG make it a valuable ingredient in many food products. This review presents a comprehensive overview of the various potential applications of this versatile ingredient in the food industry. Especially in the plant-based food industries due to current interest of consumers in cheaper protein sources and health purposes. However, challenges and opportunities also exist, and this review aims to identify and explore these issues in greater detail. Overall, this article represents a valuable contribution to the scientific understanding of XG and its potential applications in the food industry.