Hydrolates, also referred to as hydrosols, floral or distillate waters, as well as aromatic waters, are produced in the same isolation process with essential oils by steam distillation. A small amount of essential oil constituents is dissolved in hydrolates providing specific organoleptic properties and flavor, as well as biological activity which makes them useful as raw material in many industries. Their popularity is still on the rise, especially in aromatherapy. The objective in this review is to analyze the chemical compositions of hydrolates and their corresponding essential oils, as well as biological activity of hydrolates (antimicrobial, antioxidant and antiinflamatory) and potential uses, not only in food industry for flavoring, and preservation of fresh-cut fruits and vegetables, but also as functional (soft) drinks. However, hydrolates can be used in aromatherapy and cosmetics, as well as in organic agriculture and aquaculture.