Melatonin, an indolic tryptophan-derived compound, is secreted rhythmically from the pineal gland, mainly under the regulation of the circadian clock located in the suprachiasmatic nuclei (SCN) of the hypothalamus. Melatonin is widely present in nature, with biological activities in unicellular organisms, plants, and animals. A major function of melatonin is to transmit information to organisms about certain physiological functions in response to daily and seasonal variations in their environment. In this paper, we review a variety of melatonin’s functional properties, its occurrence in plants, and its synthesis by yeasts. Fermented milk supplemented with melatonin-rich plants and yeasts can be used for the effective treatment of sleep disorders.