Much attention has recently been paid to natural bioactive compounds from marine organisms as functional ingredients due to their various beneficial health effects. Marine bioactive compounds have numerous applications in food packaging, animal feeding, biodiesel/biogas, natural pigments, cosmetics, and enzyme isolation, among others. In addition, many studies have reported that marine bioactive compounds can be used as antioxidative, antihypertensive, antitumor, anticoagulant, and antimicrobial components in functional foods or nutraceuticals and pharmaceuticals due to their health benefits and therapeutic potentials. This review focuses on the utilization of marine bioactive by-products and their potential application in food and pharmaceutical industries.