Herbal teas like vine tea (Ampelopsis grossedentata) have been traditionally consumed worldwide because of their health-promotion and pleasant taste. Vine tea and its main bioactive component, dihydromyricetin, have gained attention because of their potential applications in food, material, and pharmaceutical sciences. Vine tea and dihydromyricetin have been suggested as potential natural antioxidants to extend shelf life of foods. Studies have also suggested potential application in packaging and food safety. Additionally, dietary supplementation with vine tea extract have shown great potential to prevent metabolic diseases, which can justify its application in novel functional foods. This review discusses the chemistry, functional properties, and potential applications of vine tea and dihydromyricetin in the food industry. Although vine tea extracts and dihydromyricetin have shown promising results, further studies on optimal application, thermal stability, synergetic effect with other natural antioxidants, consumer acceptability, and sensory profile of vine tea are needed to support food product innovation.