Transglutamniase is an enzyme that forms crosslinks between protein molecules. This crosslinking has unique effects on protein properties, gelation capability, thermal stability, water-holding capacity, etc. A transglutaminase has been isolated from Streptoverticillium spp., and its practical use in the food industry realized. Transglutaminase is now widely used in seafood, surimi products, noodles/pasta, dairy products, baked goods, and so on. It has great potential to improve the firmness, elasticity, heat stability, and water-holding capacity of prepared foods through the mild enzyme reaction. The overall application of transglutaminase in the food industry are reviewed in present paper.