Frozen yogurt formulated with γ-aminobutyric acid (GABA)-enriched yogurt represents a promising functional dairy matrix in response to growing interest in foods associated with cognitive health and neurological well-being. Although GABA has been associated with neurophysiological roles, product-specific clinical evidence for GABA-enriched frozen yogurt is not established. This review focuses on technological and engineering aspects rather than clinical efficacy. This review synthesizes recent advances in microbial biosynthesis and engineering strategies for producing high-quality GABA-frozen yogurt, including lactic acid bacteria strain selection (e.g., Levilactobacillus brevis, Lactiplantibacillus plantarum), fermentation optimization, and critical processing steps such as homogenization, aging, and dynamic freezing. Advanced technologies, including high-pressure processing, microfluidization, and the use of cryoprotectants, are discussed in relation to achieving target physicochemical properties. Target physicochemical properties for frozen yogurt systems typically include 35%-40% (w/w) total solids in the frozen yogurt mix and 20%-50% (v/v) overrun in the final frozen product, consistent with ranged reported for frozen yogurt and adjacent frozen dairy desserts; these values depend on formulation composition and processing conditions. Previous clinical trials and limited human studies suggest that GABA may contribute to anxiolytic and neuroprotective effects via the gut-brain axis; however, evidence specific to dairy-based delivery systems remains limited. Key challenges include maintaining GABA stability during frozen storage, scaling production, and navigating regulatory frameworks. Future perspectives highlight nanoencapsulation, synbiotic formulations, and computational modeling as tools to advance the development of GABA-enriched frozen yogurt as a functional dairy product supporting cognitive wellness.