The olive has a history almost as long as that of Western civilization and has been looked upon as a sign of hope, peace, and sacredness. Olive oil, extracted from the olive, is the principal source of dietary fat in the Mediterranean basin. The composition differs from that of other dietary fats in that olive oil is rich in monounsaturated fatty acids. Even other than as a source of monounsaturated fats, olive oil has own unique effects. Accumulating evidence suggests that olive oil may have beneficial health effects, especially when it comes to reducing risk factors for coronary heart diseases, preventing cancer, and modifying immune and inflammatory responses. However, evidence remains limited, definitive conclusions are difficult to draw, and there remains a significant need for further studies, particularly prospective cohort and well-designed, controlled intervention studies. In this manuscript, the beneficial health effects of olive oil are reviewed, with particular attention paid to cancer prevention and immune functions.