Prebiotics are non-digestible carbohydrates which can be used as prime source of energy for gut microflora. These can be naturally occurring in fruit and vegetables or can be made synthetically by enzymatic digestions. New versatile sources of prebiotics had been found nowadays for economic commercialization. This review will decipher on highlighting the importance of prebiotics in immunomodulation and nutrient absorption abilities of gut, as it is important for the anti-effective capacity of the organism especially in the neonatal period. Moreover, new prebiotics transmission strategies with higher penetrating capacity such as microencapsulation and immobilization have been discussed. In addition to this, literature had shown the modulation of gut microflora by the continuous use of prebiotics in many disorders so here, the role of prebiotics in health-related issues such as diabetes and inflammatory bowel disease (IBS) have been explained.