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Galacto-oligosaccharides (GOS) are prebiotic compounds that can be produced from lactose-rich dairy waste, such as whey. Whey is a byproduct of cheese, casein, or paneer processing and contains significant amounts of lactose. There are several methods for producing GOS from whey, including enzymatic hydrolysis, fermentation, and the use of cell biomass. Enzymatic hydrolysis is the most commonly used method because it is considered to be a more natural and sustainable process. Various factors affect GOS production from whey, such as the type of enzyme used, reaction conditions, and the degree of lactose hydrolysis. Whey-based GOS has the potential for use as a value-added product in the dairy industry. Several studies have shown the potential of whey-based GOS as a functional ingredient in various food products to improve sensory properties, sweetness, and nutritional value. Whey hydrolysate containing GOS can also be used as a source of dietary fiber and sweetening additives in food products. The production of GOS from whey is a promising approach for the dairy industry to add value to its waste products and produce a functional ingredient with potential health benefits. Further research is needed to optimize the production process and to explore the effects of whey constituents on GOS production.