We are facing the challenge of climate change and food insecurity for a growing population. The current mode of animal protein production via animal agriculture is resource-intensive and unsustainable. Therefore, there is a need to find alternative sources of food protein that are environmentally sustainable. Plant-based proteins, specifically pulse-based proteins, provide a promising solution to the problem. This review aims to provide an overview and perspective on extraction, functionality, digestibility, sensory, and new food applications of pulse proteins. Two main methods, namely wet fractionation and dry fractionation are used to extract pulse-based proteins. As compared to dry fractionation, wet fractionation yields high purity protein, but the process alters the structure and function of the proteins. Various biochemical and physical techniques can be used to assist wet extraction process to increase protein yield and/or reduce extraction time. The main techno-functional properties of plant-based proteins determining their practical applicability are solubility, water/oil holding capacity (WHC/OHC), gelation, emulsification, foaming, and rheological properties. Nutritionally, pulse proteins are deficient in one or more essential amino acids. Strategies to overcome the deficiency are discussed. Volatile and non-volatile compounds inherent to pulses or developed during processing are mostly responsible for the off flavors in the extracted protein. Approaches to improve the pulse protein flavor and remove or modify off-flavors are discussed. Pulse-based protein ingredients have applications in bakery products, pasta, meat analogues, dairy alternatives, and beverages. Beyond these applications, there is a need to explore novel applications of pulse proteins in infant and children’s formula, beverages, breakfast cereals, flavor development, and extruded snack products, develop new applications such as personalized and precision nutrition and bioactive peptides, and employ innovative technologies such as 3D printing, extrusion, and artificial intelligence for pulse protein research. This review presents the current status, limitations, and future perspectives for developing pulse protein ingredients as future foods. This review aims to foster thinking and generate novel ideas for future research.