In recent years, whey has been recognised as a major source of nutritional and functional ingredients for the food industry. Commercial whey products include various powders, whey protein concentrates and isolates, and fractionated proteins, such as a-lactalbumin and P-lactoglobulin. The increased interest in separation and fractionation of whey proteins arises from the differences in their functional, biological and nutritional properties. In response to concerns about environmental aspects, research has been focused on membrane filtration technology, which provides exciting new opportunities for large-scale protein and lactose fractionation. Membrane separation is such technique in which particles are separated according to their molecular size. The types of membrane processing techniques are ultrafiltration, microfiltration, reverse osmosis, pervaporation, electrodialysis and nanofiltration. A higher purification of whey proteins is possible by combining membrane separation with ion-exchange. This paper provides an overview of types and applications of membrane separation techniques in whey processing and production of whey-based functional compounds.