Lactobacillus acidophilus is a probiotic bacterium that possesses numerous health-promoting properties and has significant technological applications in the fermentation of a wide range of food products and beverages. This review discusses the health benefits of L. acidophilus, including its ability to enhance immunity; promote digestive wellness; and exhibit antioxidant, antitumor, and antimicrobial properties. This review also discusses the production of bioactive peptides and extracellular polysaccharides (EPS) by L. acidophilus. Factors, such as salinity, temperature, carbon sources, and nutrient availability, influence the growth of L. acidophilus, which can affect the survival and bioactive potential of fermented products. The proteolytic effects of L. acidophilus contribute to protein breakdown, which leads to the release of bioactive peptides with various health benefits. This review also discusses the applications of L. acidophilus in the fermentation of dairy products, cereal beverages, soymilk, fruit and vegetable juices, and other functional food preparations, highlighting its potential for improving the nutritional value, organoleptic properties, and probiotic delivery of these products. This review highlights the importance of understanding and controlling fermentation conditions to maximize the growth and health-promoting benefits of L. acidophilus in various food and beverage products.