$gamma$-aminobutyric acid (GABA) is a ubiquitous nonprotein amino acid that is produced primarily by $alpha$-decarboxylation of L-glutamic acid (Glu) catalyzed by the enzyme glutamate decarboxylase (GAD). It is well known as a neurotransmitter that regulates inhibitory neurotransmission in the mammalian central nervous system. In addition, GABA has been proved to be effective for lowering blood pressure in mammals. This paper is intended to provide basic information about GABA, including the functional and biological activity of GABA, GABA production by lactic acid bacteria, and the utilization of GABA in the production of dairy products.