This review provides the application of dietary fiber (DF) in food industry by a new perspective, a systematic analytical framework of source-interaction-application has been constructed. Firstly, the current status of DF extraction and preparation from cereal, fruit, vegetable, legume and processing by-products are reviewed according to source categories. Then the interaction mechanisms between DF and important food components such as protein, lipid, water, carbohydrate and other bioactive substances are discussed. Finally, the effects of DF on the quality of products of different types (such as bakery, beverage and meat products) are analyzed. However, there are still some limitations on the economics of DF extraction process, in-depth analysis of the mechanism of action, and diversity of applied products. This review can provide theoretical support and research ideas for DF preparation, multi-scale interactions between DF with food components and its effect on product quality, which can lay a good foundation for the application of DF in food industry.