Chlorogenic acid (CGA), also known as 5-O-caffeoylquinic acid, is one of the most abundant phenolic compounds in nature. CGA exhibits antioxidant, anti-inflammatory, anti-tumor, neuroprotective, cardiovascular, hepatoprotective, and metabolic regulatory properties. Due to the high usage of milk and fermented milk products, dairy becomes an excellent food source for CGA fortification, focusing on exploiting health benefits for consumers. An increasing trend exists in utilizing plant materials rich in CGA in dairy formulations to enhance dairy products' antioxidant profile and health-promoting potential. This review examines 58 recent studies on CGA incorporation into dairy products, focusing on their chemistry, biological activities, processing methods, and potential challenges for fortification. Extraction techniques such as microwave-assisted extraction and ultrasonic-assisted methods are preferred over conventional methods due to their efficiency and the quality of the extracts. In dairy formulations, thermal processing, high-pressure homogenization, controlled fermentation, and encapsulation techniques are critical for maintaining the stability and efficacy of CGA. Encapsulation with materials like β-cyclodextrin and chitosan nanoparticles enhances CGA stability during processing, storage, and digestion. This review emphasizes the significance of understanding CGA-protein interactions in dairy matrices, as these can either protect CGA from degradation or influence its bioavailability. The findings of this study underscore, in heat-treated and fermented dairy systems, that processing-induced CGA-milk protein interactions safeguard CGA from oxidative damage and improve CGA's bioaccessibility. Further research is needed to optimize CGA fortification strategies in dairy products to maximize their functional benefits.