In regions reliant on fisheries for livelihoods, a significant number of fish by-products are generated annually due to processing. These discarded parts contain valuable biological resources, such as proteins, fish oils, and trace elements, thus holding enormous potential for reutilization. In recent years, fish by-product proteins have been widely utilized in skincare products due to their rich collagen content, biosafety, and biocompatibility. This review summarizes the research into and applications of fish by-product proteins in skin health, including alleviating oxidative stress and skin inflammation, reducing DNA damage, mitigating melanin production, improving skin hydration, slowing skin matrix degradation, and promoting synthesis. Additionally, the possibility of improving skin health by improving the abundance of gut microbiota is also discussed. This review underscores the importance of fish by-product proteins in the fisheries, food processing, cosmetics, and biomedical industries.