Low-molecular pectin (LMP), a natural polysaccharide extracted from plant cell walls, has garnered increasing attention in recent years owing to its multiple physiological activities and broad applications. This review summarizes the advances in the extraction processes, physiological functions, and practical applications of LMP over the past decade. The extraction methodologies cover traditional chemical extraction, enzymatic hydrolysis, physical-assisted techniques, and other approaches. The physiological functions are also elaborated, encompassing anti-tumor effects, lipid-lowering, hypoglycemic, antioxidant activities, and regulation of intestinal microbiota. The application scenarios are discussed across diverse industries, such as food, pharmaceuticals, and cosmetics. Meanwhile, future research directions of LMP are also prospected.