Caking has been a serious problem in food, feed, pharmaceutical, and related industries, where dry powdered materials are produced and/or utilized. Caking of dry food powders occurs when water is redistributed or absorbed by the powders during processing and storage. The powders become sticky when their surfaces are mobilized by water, resulting in inter-particle binding, formation of clusters, and inter-particle fusion, which lead to caking. As a result of caking, the solubility of the powdered materials may decrease, lipid oxidation and enzymatic activity may increase, and sensory qualities such as flavor and crispness may deteriorate. Caking may also lead to microbial growth. For consumers, caking of powder products is a sign of poor quality and possible food safety problems. This paper provides a review of factors affecting caking, caking mechanisms, and analysis of caking based on previous studies.