Microbial transglutaminase (MTG) isolated from Streptomyces mobaraensis has been available on a commercial scale for several years. MTG generates inter- and intramolecular cross-links between gamma-carboxylamide groups of glutamine residues and epsilon-amino groups of lysine residues in proteins. Due to its great potential to improve various functional properties of proteins, MTG is mainly used to enhance texture, stability, and water binding. Application of MTG for the production of plant protein-based foodstuffs such as tofu, noodles, bread and bakery products, is still limited to raw materials from soybean and wheat. However, with the increasing demand for vegetarian foods, the utilisation of novel proteins as functional ingredients, e.g. from peas, lupins, sesame, and sunflower, seems promising. To open new horizons for MTG application, this review aims at demonstrating the actual potential of MTG in processing foodstuffs based on vegetable proteins. Particular focus was laid on novel plant protein sources suitable for cross-linking with MTG. Furthermore, strategies for improving texture and nutritive value of the proteins are discussed.