The development of new materials, processes and in machinery plays an important role in pharmaceutical industry. This allows the solid dosage form manufacturers to improve and develop their processes toward the exploitation of direct compression and dry granulation (e.g., roll compaction) leading to relatively fast process and low cost. This review outlines a comprehensive understanding on the physico‐chemical and compaction properties of native and modified starches. The physical modification of native starch has been given a technical focus along with an understanding on the impact of their modified powder/tablet properties on direct compression attributes. All processes involved on starch modifications have been confined herein to the production of direct compression excipients with multifunctional purposes as most chemical modifications exhibit limited applications.