Lactulose is well known for functional component in the food and pharmaceutical field and utilized in a wide variety of foods as a bifidus factor or functional ingredient for intestinal regulation. Lactulose synthesis can be classified into chemical and biological methods. In chemical methods, lactulose is synthesized by alkaline isomerization, but it has many disadvantages such as including product purification, lactulose degradation, side reactions and waste management. Therefore, the enzymatic synthesis methods were recently studied to solve these problems. β-galactosidase is a important enzyme in the dairy industry, because of the production of lactose-hydrolyzed products. Also, β-galactosidases can be utilized to synthesize lactulose from lactose by a trans-galactosylation reaction, using fructose as a galactosyl acceptor. However, the synthesis of lactulose from lactose is economically not suitable due to high levels of lactose price. This review summarizes the current state of lactulose production by chemical and biological processes.