Whole grains and their products have existed or been introduced worldwide, but there are still some challenges facing researchers and food manufacturers. This article focuses on the current development status of whole grains and the processing and sensory challenges to increasing whole grain food consumption in China. Whole grain foods have been consumed in China for centuries; however, refined grain products became more popular with advances in grinding technology. In recent years, a decline in people’s health has reminded consumers that whole grain foods are excellent alternatives in a healthy diet. The market share of whole grain foods started to increase at a very fast pace in China at the beginning of the 21st century. Processing technology is a key factor influencing the expansion of whole grain products. Due to the darker color and larger particle size of bran and active enzymes in the germ, whole grain foods usually present an undesirable appearance, mouthfeel, and shelf life. Grinding of the entire kernel, sprouting, fermentation, and extrusion techniques have shown great benefits in improving the texture and sensory characteristics of whole grain foods. Because of nutrient loss during processing, a balance between desirable flavor and nutritional value should be considered for future innovations in whole grain processing technology.