Abstract: In the Chinese traditional diet, grain is the most cost-effective and crucial source of human energy. However, in recent years, China's grain consumption has decreased year after year. Furthermore, a grain-based diet is inefficient in terms of digestion and absorption, and some grains contain anti-nutrients. At the same time, a lack of product innovation limits the use and promotion of grain products. Germination and fermentation have been shown to affect changes in cereal nutritional and functional active components, improve cereal digestion and absorption in humans, reduce allergic reactions in some populations, and improve cereal flavor, all of which can improve cereal nutrition and use value. This paper primarily examines the effects of germination and fermentation on the nutritional and functional active ingredients of cereals, summarizes the development of domestic and international research on cereal processing, and offers a prognosis for the future directions of research and development in cereal food processing. Its purpose is to provide theoretical references for germination or fermentation on grain processing applications.