Unani medicine integrates nutrition and therapy through the principles of Ghiza e Dawa (food as medicine) and Dawa e Ghiza (medicine as food). These concepts are vital for promoting health and preventing disease. This review investigates how these traditional Unani principles can be applied to the development of functional foods, which offer both nutritional and medicinal benefits. A comprehensive literature review was performed, focusing on historical texts, contemporary research articles, and case studies documenting the use of Ghiza e Dawa and Dawa e Ghiza in Unani medicine. The review also analyzes specific Unani herbal formulations such as Sikanjabin (vinegar-honey syrup), Maul Jubn (whey), Maul Asal (honey-based preparation), Maus Shaheer (Barley water), and Zulal-e-Imly (tamarind-based beverage). The methods include their sourcing, processing, and application in modern functional food development. The findings indicate that Unani formulations like Sikanjabin, Maul Jubn, Maul Asal, Maus Shaheer, and Zulal-e-Imly hold significant potential in the development of functional foods. These preparations not only enhance nutritional profiles but also provide therapeutic benefits, such as improving metabolic health and overall well-being. The review highlights the importance of sustainable practices in sourcing and processing these ingredients to maintain their efficacy. Integrating Ghiza e Dawa and Dawa e Ghiza concepts into functional food development offers a promising strategy for addressing modern health issues. Bridging traditional Unani wisdom with contemporary food science can lead to the creation of effective and sustainable functional foods. Future research should focus on optimizing these formulations and evaluating their impact on public health.