This systematic literature review collects and summarizes research on consumer acceptance and preferences for nutrition-modified and functional dairy products, to reconcile, and expand upon, the findings of previous studies. We find that female consumers show high acceptance for some functional dairy products, such as yogurt enriched with calcium, fiber and probiotics. Acceptance for functional dairy products increases among consumers with higher diet/health related knowledge, as well as with aging. General interest in health, food-neophobia and perceived self-efficacy seem also to contribute shaping the acceptance for functional dairy products. Furthermore, products with "natural" matches between carriers and ingredients have the highest level of acceptance among consumers. Last, we find that brand familiarity drives consumers with low interest in health to increase their acceptance and preference for health-enhanced dairy products, such as probiotic yogurts, or those with a general function claim.