Throughout the crucial years of growth and development, malnutrition in all its manifestations can have a long-lasting detrimental effect on a child’s health and well-being. Many people worldwide still experience both over nutrition and under nutrition, especially small children who are dependent on others for survival, even though the majority of cases of malnutrition can be avoided with straightforward dietary adjustments. A growing variety of problems, including infectious diseases, pollution, poor environmental conditions, climate change, and food-related issues, are having an impact on children’s health. The creation and consumption of food, which are the primary contributors to these problems, need to be radically altered if the 2030 Sustainable Development objectives must be fulfilled. Food production and sources (plant-versus animal-based). Methods and the results of studies on sustainability and health in policy considerations, food processing, the effects of a more globalized food system, and food loss and waste have gained prominence. Several studies warn against consuming meals that come from animals that are hungry resources. Additionally, processed foods offer more plant-based options and have been linked to excessive waste and pollution. However, further explanation is needed for a few of these ideas when taking global child health concerns into account. Children’s global nutritional demands, along with the welfare and level of living of their families and communities, can be greatly influenced by the foods they eat. The need for nuance may be seen clearly in the variations in dairy production and consumption patterns around the world and the effects these variations have on dairy products. For the food system’s sustainability as well as for the health of children. This narrative review attempts to address the effects of dairy products on children’s health within the framework of a sustainable food system. To effectively balance trade-offs, optimize outcomes, and prevent unintended consequences, a complete strategy that takes into account the four domains of sustainability—health, economy, society, and the environment—should be used to examine child health within this framework. To guarantee that children have access to nutrient-dense, healthful foods in sustainable food systems, children’s needs must be given special consideration in the broader narrative of the food system’s transformation.