Exopolysaccharides (EPS) are known to have technological and functional applications in food industry including dairy based products such as yoghurt. Yoghurt is a widely consumed dairy based product due to pleasant taste and texture, as well as a source of nutrients and bioactive compounds. At the same time, structural, rheological and sensorial properties are important in the production of good quality yoghurt. Various natural hydrocolloids including EPS with stabilizing and texture enhancing properties could be useful in enhancing these desirable properties. Apart from that, EPS may enhance various other functional properties of yoghurt such as antioxidant and prebiotic potential. Based on its prebiotic property, symbiotic products could be developed by combining EPS and probiotic bacterial strains. EPS has potential to provide physical and micro structural stability, thereby enhancing the protein distribution and viscoelastic properties. Main focus of the present review is to provide an insight on the action of EPS as a functional hydrocolloid on the technological, rheological and functional properties of yoghurt and related products.