The increasing demand for plant-based proteins faces challenges due to their inherent functional limitations. To meet eco-friendly standards, several “green" and innovative processing technologies like high-pressure processing (HPP), pulse electric field (PEF), precision fermentation, 3D extrusion, and ultrasonic technology are gaining attention for protein functionality. Modifying protein structure through these technologies unlocks unique possibilities for functional food design. Understanding the mechanisms and advancements of these technologies is crucial for targeted functional improvements, opening new pathways for exploration. This review explores recent advances in HPP, PEF, precision fermentation, 3D extrusion, and ultrasonic technology for enhancing plant protein functionality, detailing their positive impacts. The role of Artificial Intelligence (AI) in discovering health-enhancing molecules in functional food ingredients is examined. Real-time monitoring and software development for precise protein control are key tools for leveraging these technologies effectively. Moreover, the need for further research in digitalization technologies to advance healthier and sustainable food choices was highlighted. Thus, the review offers invaluable insights for food researchers and scientists, providing a roadmap to advance the development of healthier, innovative, and sustainable food choices, aligning with evolving consumer preferences and eco-friendly standards.