Reducing fat and cholesterol content is currently one of the primary trends in food product innovation. Fat plays an important role in maintaining food quality, particularly the texture, flavor, and stability of food emulsion products. The food industry faces major challenges in seeking to produce reduced-fat and low-cholesterol mayonnaise and dressings that have attributes similar to full-fat products. Efficient monitoring of products to ensure desirable quality requires knowledge of their physicochemical characteristics, including appearance, rheology, emulsion stability, microstructure, and flavor, as well as particle size and charge distribution. The purpose of this paper is to provide a comprehensive overview of trends in the development of reduced-fat and low-cholesterol dressings. The effects of reducing fat content or using various fat replacers on the physicochemical properties of dressing and mayonnaise products are detailed with supporting experimental results. The possibility of using plant-based ingredients or reduced-cholesterol egg yolk in the formulation of such products is also examined.