The research in potato chemistry has established the fact that there is a lot more in potatoes than starch. Phytochemicals content in potatoes can be enhanced by developing new varieties from available germplasm high in these compounds. Natural colourant and antioxidant present in purple- and red-flesh potatoes can be used for developing functional foods/nutraceuticals. Considering the large quantities in which potatoes are consumed throughout the world, potatoes could be a very good vehicle for addressing some health related problems. Available evidence suggests that postharvest storage of potatoes do not significantly affect the content of phytochemicals. Antioxidant levels are generally higher in potatoes grown in high-yielding environments, and increased during storage. Pigmented potatoes may also serve as a potential source of natural anthocyanins for use in food industry since the cost of production of potatoes is relatively low as compared to other horticultural crops. In addition, potato is a high yielding crop and the cultural and storage practices are well established. However, for the economy of the whole process of pigment extraction, potatoes with high concentrations of anthocyanins are desirable. In general, cooking leads to losses of nutrients in potatoes; however, phytonutrients are either not affected or sometimes increased due to increase in extractability and bioavailability. There is a need for further research to explore the ways by which losses in phytochemicals can be reduced such as co-pigmentation, and their stability can be enhanced. Potatoes contain enough phytochemicals to justify the claim of being health promoters, therefore, should form a substantial part of our daily diet. Different pigmented potato based foods needs to be developed and evaluated especially with respect to the antioxidant capacity and other health benefits.