In recent years the consumption of cereals and pulses have been subjected to food and nutrition trends as consumers become more aware of the benefits of plant-based nutrition. Cereals are excellent sources of many essential nutrients such as proteins, dietary fibers, lipids, minerals, and vitamins, as well as bioactive compounds like polyphenols and GABA. However, the nutritional value of cereals and pulses may decrease by the presence of antinutritional factors such as trypsin inhibitors, oxalate, and phytic acid. Germination, which breaks the seed dormancy by activating endogenous enzymes, is identified as the most effective and economical option to boost the nutritional qualities and reduce the activity of antinutrients in cereal and pulses. Germination offers numerous health benefits to humans by enhancing the bioactive compounds in cereals and pulses, including antidiabetic, antihypertensive, and anticancer activities. In addition, germination enhances the bioavailability and bioaccessibility of nutrients and bioactive substances in the human gut by improving the digestibility of complex molecules in cereals and pulses. This review is to summarize how germination affects the nutritional and functional composition of cereals and pulses in the development of functional foods. The review also discusses how germination affects the bioavailability, bioaccessibility, and digestion of nutrients in cereals and pulses.<p></p>