Recently, there has been a growing interest in using radiation to change various properties of polysaccharides. This review gives a more detailed examination of the effects of gamma radiation on polysaccharides and its association with their techno-functional and biological properties following irradiation. Gamma irradiation is a potent tool for modifying the structure and properties of polysaccharides, enhancing their functionality in food applications. This review explores the effects of gamma irradiation on polysaccharides, focusing on changes in their molecular structure, physicochemical properties, and biological activities. Gamma irradiation induces chain scission and cross-linking in polysaccharides, leading to alterations in molecular weight, solubility, and viscosity. These structural modifications often enhance antioxidants, antimicrobial, and anti-inflammatory activities, expanding their potential use in food products. Gamma-irradiated polysaccharides exhibit improved gelation, emulsification, and film-forming abilities, making them suitable for various food applications such as thickeners, stabilizers, and edible coatings. The review also discusses the safety and regulatory aspects of using gamma-irradiated polysaccharides in food products. Future research directions are proposed to optimize irradiation conditions and further explore the multifunctional benefits of these modified polysaccharides, ultimately contributing to the development of innovative, functional food products.