Electrospinning is a simple and versatile encapsulation technology. Since electrospinning does not involve severe conditions of temperature or pressure or the use of harsh chemicals, it has great potential for effectively entrapping and delivering bioactive compounds. Recently, electrospinning has been used in the food industry to encapsulate bioactive compounds into different biopolymers (carbohydrates and proteins), protecting them from adverse environmental conditions, maintaining the health-promoting properties, and achieving their controlled release. Electrospinning opens a new horizon in food technology with possible commercialization in the near future. This review summarizes the principles and the types of electrospinning processes. The electrospinning of biopolymers and their application in encapsulating of bioactive compounds are highlighted. The existing scope, limitations, and future prospects of electrospinning bioactive compounds are also presented.