This narrative review examines how fermentation—traditional, biomass, and precision—can improve the sensory and nutritional quality of plant-based meat and dairy alternatives. Fermentation reduces off-flavors, enhances protein digestibility and mineral bioavailability, and can produce targeted ingredients like heme proteins and vitamins. The review highlights that while fermentation offers a clean-label strategy to reduce additives, challenges remain in consumer acceptance of precision fermentation and scalability.