European cereal-based fermented foods (ECBFFs) and alcoholic beverages have been fundamental components of regional diets for centuries, providing unique flavor profiles, essential nutrients, and a diverse array of health benefits. These foods, which encompass breads, beverages, and porridges, derive their functional and culinary properties from the activity of lactic acid bacteria and yeasts. This review examines the nutritional and functional characteristics of ECBFFs, with a focus on their microbial composition and fermentation processes. It highlights various ECBFFs and alcoholic beverages, including conventional and sourdough breads, tarhana, boza, kvass, and beers examining their health-promoting properties and potential for commercial expansion. Key findings from the literature show that certain ECBFFs are abundant in prebiotics and probiotics, primarily due to the fermentation processes involving lactic acid bacteria and yeasts. These microorganisms generate bioactive compounds such as organic acids, bacteriocins, and phenolic compounds, which exhibit antimicrobial, antioxidant, and anti-inflammatory activities. ECBFFs can also enhance digestibility, improve mineral bioavailability, and support gut health, thereby promoting overall well-being. From a commercial perspective, products like Yosa and Proviva demonstrate the feasibility of developing innovative ECBFFs that align with contemporary dietary preferences. The future of ECBFFs is promising, offering extensive opportunities for research, innovation, and large-scale commercialization to meet the increasing consumer demand for functional, plant-based foods.