This systematic review presents recent research on seed oils, with an emphasis on extraction processes, health-promoting properties, and potential applications in food product development. As interest grows in sustainable and health-conscious food alternatives, seed oils have gained attention for their usefulness and nutritional value. However, there is a lack of up-to-date and systematic reviews that cover the entire scope of seed oil research, from extraction techniques to their nutritional and functional roles. To fill this gap, a systematic search was performed using the Scopus and ScienceDirect databases, with articles published between 2023 and 2025 being prioritised. The PRISMA guidelines guided this systematic review, with the resultant integration of relevant literature. The findings were categorised into three main themes: (1) extraction, characterisation, and functional properties of seed oils; (2) health benefits, nutritional value, and functional applications; and (3) seed oils in food product development and fat replacement. There has been significant improvement in extraction technologies, along with the identification of bioactive compounds present in seed oils, which may provide beneficial health effects. This review emphasises the importance of seed oils in improving food quality and enhancing consumer health. These findings are an important resource for researchers and food industry professionals interested in exploring the broader applications of seed oils in food technology and health-oriented solutions.