Transposable elements have long been recognised as critical drivers of genetic diversity and evolution in plant genomes, influencing various physiological and developmental processes. The transcription factor family FAR-RED ELONGATED HYPOCOTYLS3 (FHY3), and its homologue FAR-RED IMPAIRED RESPONSE1 (FAR1), initially identified as key components of phytochrome A (phyA)-mediated far-red (FR) light signalling in Arabidopsis thaliana, are derived from transposases and are essential for light signal transduction, plant growth, and development. FHY3 and FAR1 are also the founding members of the FAR1-RELATED SEQUENCE (FRS) family, which is conserved across terrestrial plants. While the coding sequences of many putative FRS and FAR1-RELATED FACTOR (FRF) orthologs have been identified in various angiosperm clades, their physiological functions remain largely unexplored. The FRF genes are considered truncated forms of FRS proteins that compete with FRS for DNA binding sites, thereby regulating gene expression. This review highlights recent advances in characterising the molecular mechanisms of FHY3, FAR1, and other members of the FRS-FRF protein family. We examine their roles in key processes such as regulating flowering time, controlling branching, integrating leaf aging and senescence, modulating the circadian clock, maintaining meristem function, starch synthesis, seed germination, and responding to Starch synthesis and carbon starvation. Additionally, we explore their contributions to plant immunity under biotic and abiotic stresses. Finally, we suggest future directions for functional characterising other FRS-FRF family proteins in plants, which could provide deeper insights into their regulatory roles in plant biology.