Tagatose, a low-calorie natural sugar, has recently received FDA GRAS status, allowing its use as a sweetener in food and beverages. This paper provides an overview of tagatose, including its applications in food and beverages and potential health benefits. Safety studies conducted according to FDA guidelines support its GRAS status. Small clinical trials have shown tagatose to be effective in treating type 2 diabetes. It is a safe and effective low-calorie sweetener for various products, particularly those that require bulk, such as chocolates, gum, cakes, and ice cream. Tagatose can also complement high-intensity sweeteners in sodas. Additionally, it has potential health benefits, including treating diabetes, hyperglycemia, anemia, hemophilia, and supporting fetal development.