Dairy products are known for their high nutrient content, including calcium, protein, and vitamin D, which are essential for growth and repair. One promising approach to improve the nutritional and functional qualities of dairy products is the incorporation of vegetables. Vegetables provide extra health-promoting ingredients including dietary fiber, antioxidants, vitamins, minerals, and phytochemicals, while dairy products are naturally high in vital nutrients like calcium, protein, and vitamin D. The potential and difficulties of adding different types of vegetables (such as purees, powders, and extracts) to dairy matrices like yoghurt, cheese, ice cream, and butter are critically surveyed in this review. The nutritional and biofunctional advantages of these combinations are discussed in the current review, along with the technological challenges they provide, such as the bioactives sensitivity to heat, sensory adjustments, formulation problems, and shelf-life stability. The evaluation also emphasizes economic viability, regulatory issues, and customer acceptance all of which are critical for practical implementation. This review attempts to direct future research and innovation in the development of vegetable-fortified dairy products by analyzing the existing literature and identifying knowledge gaps.