Edible coatings are an environmentally friendly technology that is applied on many products to control moisture transfer, gas exchange or oxidation processes. Edible coatings can provide an additional protective coating to produce and can also give the same effect as modified atmosphere storage in modifying internal gas composition. One major advantage of using edible films and coatings is that several active ingredients can be incorporated into the polymer matrix and consumed with the food, thus enhancing safety or even nutritional and sensory attributes. But, in some cases, edible coatings were not successful. The success of edible coatings for fresh products totally depends on the control of internal gas composition. Quality criteria for fruits and vegetables coated with edible films must be determined carefully and the quality parameters must be monitored throughout the storage period. Color change, firmness loss, ethanol fermentation, decay ratio and weight loss of edible film coated fruits need to be monitored. This review discusses the use of different edible coatings (polysaccharides, proteins, lipids and composite) as carriers of functional ingredients on fresh fruits and vegetables to maximize their quality and shelf life. This also includes the recent advances in the incorporation of antimicrobials, texture enhancers and nutraceuticals to improve quality and functionality of fresh-cut fruits. Sensory implications, regulatory status and future trends are also reviewed.