Abstract Hemicelluloses, a key component of lignocellulosic biomass, are versatile noncellulosic polysaccharides that play a crucial role in various industrial applications. Despite their abundance, hemicelluloses have often been overshadowed by cellulose due to their lower commercial value. However, recent advancements in extraction and modification techniques have opened new avenues for their utilization in high‐value applications. This comprehensive review delves into the structural diversity of hemicelluloses, highlighting the various extraction and pre‐treatment methods tailored to different plant sources and processing conditions. Extraction methods vary widely, including physical techniques such as steam and hot water extraction (green and fast), chemical methods like alkaline (scalable and quantitative) and acid extraction, as well as advanced approaches like microwave‐assisted hydrothermal extraction (fast and specific). Each method comes with its own set of advantages and limitations, which are critically discussed in this review. Functionalization of hemicelluloses, which enhances their properties (moisture, mechanical, and so on) and broadens their application potential (in food, agriculture, packaging, and so on), is also covered extensively. Applications of modified hemicelluloses in sectors such as biofuels, bioplastics, and pharmaceuticals are explored, with an emphasis on their future potential in sustainable and eco‐friendly technologies.