As a functional substitute for sugar, isomaltulose has similar flavor, physical, and chemical properties as sucrose. Isomaltulose is stable in terms of acid resistance, microbial fermentation, and crystal structure, and has relatively low hygroscopicity and solubility, making it suitable for use in different food formulations. Furthermore, several studies have demonstrated its safety and tolerability in subchronic toxicity, embryotoxicity, mutagenicity, and human studies. The production methods of isomaltulose domestically and internationally are predominantly consistent, utilizing reproducible immobilized microbial transformation or highly catalyzed immobilized enzymatic conversion, followed by purification through recrystallization. The resulting products can be quantitatively detected using high performance liquid chromatography. Isomaltulose has a low glycemic index, low caries potential, and relatively slow digestion and absorption. In addition, it improves insulin responses, prebiotic properties, and regulates the intestinal flora. Extensive research has been conducted on the practical utilization of isomaltulose in foods for special medical purposes (FSMP), children's foods, general foods (including dairy products and cereal products), and nutritional sports foods. This study evaluates current regulatory policies and integrates their findings to propose recommendations for re-evaluating the dual identity of isomaltulose in its application as a food additives and as a potential new food ingredient. [ABSTRACT FROM AUTHOR]