Large amount of underutilized by-products are generated from the seafood processing plants annually. Consequently, researches have been initiated to investigate those discarded materials and have identified a number of bioactive compounds including bioactive peptides, collagen and gelatin, oligosaccharides, fatty acids, enzymes, calcium, water-soluble minerals, and biopolymers. Bioactive peptides derived from fish by-products have shown various biological activities including antihypertensive and antioxidant activities and hence may be a potential material for biomedical and food industries. Collagen and gelatin are currently used in diverse fields including food, cosmetic, and biomedical industries. Other than that, they are promising drug carriers for the treatment of cancer. Many studies have reported that chitin, chitosan, and their derivatives possess biologically active polysaccharides and hence they are potential agents for many applications. Further, those compounds have also showed potential activities such as antioxidant, antibacterial, antiviral, antihypertensive, anticancer, etc. Hence, seafood by-products are valuable natural resources that show range of functionalities and hence potential materials for biomedical and nutraceutical industries. Copyright © 2012 Elsevier Inc. All rights reserved.