The legume Arachis hypogaea, commonly known as peanut or groundnut, is a very important food crop throughout the tropics and subtropics. Peanut is one of the most widely used legumes due to its nutrition and taste, and it occupies a rank of major oilseed crop in the world. It has been recognized as a functional food due to its role in a health promoting effect. Peanut oil contains a well-balanced fatty acid and antioxidant profile that provide protection against harmful substances especially free radicals. This paper gives an overview of scientific literature available on phytochemical and functional properties of peanut oil. Owing to its unique organoleptic properties associated with its cardioprotective and anti-inflammatory properties, peanut oil has found, recently, its place on the highly competitive international edible oil market.