Grinding is a staple size-reduction process to produce food powders in which the powdered form is chemically and microbiologically stable and convenient to use as end products or intermediate products. The moisture content of food materials before grinding is a particularly important factor, since it determines the materials’ physical properties and the powder properties, such as flowability after grinding. Generally, the moisture content of food materials is closely related to its energy requirement for grinding, because the energy expenditure required to create new surfaces varies. Grinding models used to analyze and predict the grinding characteristics, including energy, have been developed in many studies. The moisture content also influences powder flow properties. The inter-particle liquid bridges among the particles are due to the moisture in powders; therefore, the flowability of powders is interrupted because of the increase of the cohesiveness of the powder. Understanding the grinding characteristics related to various moisture contents is, theoretically and experimentally, an important cornerstone in optimizing the grinding processes used in food industries. In this review, comprehensive research of the effect of moisture content on the grinding process and powder properties is presented.