Camel milk plays a critical role in the diet of peoples belongs to the semi-arid and arid regions. Since prehistoric times, camel milk marketing was limited due to lacking the processing facilities in the camel-rearing areas, nomads practiced the self-consumption of raw and fermented camel milk. A better understanding of the techno-functional properties of camel milk is required for product improvement to address market and customer needs. Despite the superior nutraceutical and health promoting potential, limited camel dairy products are available compared to other bovines. It is a challenging impetus for the dairy industry to provide diversified camel dairy products to consumers with superior nutritional and functional qualities. The physicochemical behavior and characteristics of camel milk is different than the bovine milk, which poses processing and technological challenges. Traditionally camel milk is only processed into various fermented and non-fermented products; however, the production of commercially important dairy products (cheese, butter, yogurt, and milk powder) from camel milk still needs to be processed successfully. Therefore, the industrial processing and transformation of camel milk into various products, including fermented dairy products, pasteurized milk, milk powder, cheese, and other products, require the development of new technologies based on applied research. This review highlights camel milk's processing constraints and techno-functional properties while presenting the challenges associated with processing the milk into various dairy products. Future research directions to improve product quality have also been discussed.