Chilli has dominated and retained an important place amongst the spices worldwide. They are dried ripe fruits intuitively consumed as a spice, condiment, culinary, and medicinal purposes. The global consumption pattern is intriguing because of the inherent pungency, aroma, taste, spicy flavour, and therapeutic properties. Predominantly, the colour and pungency decide the quality features and are actively responsible for organized marketing and trade of the dried chillies. India is one of the leading producers and exporters of chilli. The chemical composition of the chillies varies substantially with agro-climatic zones and post-harvest management strategies. The quantum of post-harvest loss of 25–35% hampers the farmer’s income and affects the wholesale/retail marketing. This review paper is intended to provide a deep insight into the advancements in various post-harvest unit operations of dried red chillies. A detailed overview of post-harvest operations (drying, grading, destalking, packaging, storage) and processing techniques for value-added products (chilli powder, dried flakes, seeds, oleoresin) is discussed in this paper. The presented information will help the researchers and the industry personnel engaged in the post-harvest processing and value addition of dried red chillies.