Lipid sources are essential components in modern swine nutrition, not only due to their high energy density but also because of their positive effects on palatability, feed efficiency, and micronutrient absorption. However, rising raw material costs have encouraged the use of oxidized fats and oils (OxFO) as a cost-effective alternative in pig diets. These lipids, degraded by thermal and handling factors, undergo chemical alterations that negatively affect digestibility, energy metabolism, and animal health. This review critically examines the current scientific evidence regarding the impact of oxidized fat consumption in swine production systems. The physiological and biochemical mechanisms by which lipid oxidation products impair mitochondrial β-oxidation, cellular oxidative balance, energy efficiency, and meat quality are discussed. Moreover, the practical consequences on productive performance, muscle oxidative stability, and the expression of inflammatory and antioxidant markers are explored. Findings suggest that although the use of oxidized fats may offer economic savings, their metabolic and productive repercussions can compromise profitability and sustainability. The need to define safe inclusion thresholds (when replacement is not feasible), standardize analytical methods to assess oxidation status, and consider nutritional alternatives to mitigate adverse effects is emphasized.