Amblyopia (lazy eye) is the most common cause of monocular vision loss, affecting up to 4% of children and often persisting into adulthood. While treating the visual acuity deficit is often the focus of treatment, there is a pressing need for researchers, educators, and clinicians to understand the effects of amblyopia that extend beyond visual acuity. This review article highlights recent advances in understanding the impact of amblyopia on everyday life functioning. Amblyopia can significantly interfere with contrast sensitivity, attention, reading, eye-hand coordination, body composition, physical activity, and health-related quality of life. A deeper understanding of the functional consequences of amblyopia can be applied to patient management and inform amblyopia treatment, as well as support research into more effective interventions to prevent or rehabilitate deficits that can hinder children's physical, social, and academic success.