This study reviews the health benefits of white tea and the development of new products derived from white tea. The core processing procedures such as withering and drying play a pivotal role in shaping the unique characteristics of white tea. In the withering phase, water gradually diminishes, and endogenous polyphenol oxidase induces a slight oxidation of polyphenols which leads to a delicate fermentation process. This not only helps preserve the integrity of most components but also imparts an exclusive flavor and taste to white tea. Additionally, white tea stands out as a rich source of polyphenols, polysaccharides, and saponins. These bioactive components which can be extractable during brewing are conferring a myriad of health benefits. These benefits include antioxidant, anti-inflammatory, anti-aging, anti-radiation, anti-hyperglycemia, anti-hyperlipidemia, neuroprotection, and cardiovascular-protection properties. Innovative applications range from ready-to-drink infusions to skincare products. The review proposes white tea as a raw material for supplements, meal replacements, and confectionery. Various studies suggest its potential in enhancing gut health, supporting endurance, and contributing to photoprotection in skincare. The article concludes by highlighting white tea’s adaptability, its role as a bridge between tradition and modernity, and its potential to shape the future of functional foods and beverages. Overall, white tea emerges as a versatile resource with applications extending beyond traditional consumption, offering a holistic approach to health and wellness.