Psychobiotics are a special class of probiotics, which deliver mental health benefits to individuals. They differ from conventional probiotics in their ability to produce or stimulate the production of neurotransmitters, short-chain fatty acids, enteroendocrine hormones and anti-inflammatory cytokines. Owing to this potential, psychobiotics have a broad spectrum of applications ranging from mood and stress alleviation to being an adjuvant in therapeutic treatment for various neurodevelopment and neurodegenerative disorders. The common psychobiotic bacteria belong to the family Lactobacilli, Streptococci, Bifidobacteria, Escherichia and Enterococci. The two-way crosstalk between the brain and the gastrointestinal system is influenced by these bacteria. The neurons present in the enteric nervous system interact directly with the neurochemicals produced by microbiota of the gut, thereby influencing the signaling to central nervous system. The present review highlights the scope and advancements made in the field, enlisting numerous commercial psychobiotic products that have flooded the market. In the latter part we discuss the potential concerns with respect to psychobiotics, such as the effects due to withdrawal, compatibility with immunocompromised patients, and the relatively unregulated probiotic market.