The global biomass of edible jellyfish is expected to increase due to changing climate conditions; thus, developing novel jellyfish collagen-based products is a potential solution for increasing jellyfish demand in Western societies. Collagen is an abundant structural protein found in numerous tissues of mammalian and marine species. Jellyfish are an excellent source of high-quality collagen, which can be enzymatically or chemically hydrolyzed to produce hydrolyzed jellyfish collagen-based products. Consumption of hydrolyzed collagen products has become increasingly popular due to clinically proven health benefits, including anti-aging properties. Although most collagen-based products are derived from vertebrate species, edible jellyfish is an invertebrate collagen source with potential food, supplement, cosmetic, medicinal, and material applications. As the number of collagen-based products in the market grows, researchers are constantly searching for innovative collagen sources. A novel option to generate jellyfish collagen products is emerging. Thus, this timely review aims to educate, summarize, and discuss current research demonstrating the broad versatility and potential of this alternative collagen source. Hydrolyzed jellyfish collagen exhibits unique physicochemical/functional properties and attributes not observed in vertebrate collagens. Recent research has highlighted numerous advances in processing, applications, and health benefits utilizing this collagen source. Although more research is necessary to better comprehend and unlock the full potential of jellyfish collagen, this emerging trend for jellyfish collagen will not only open the door for growing the global jellyfish industry by developing innovative products and applications but also change the makeup of the global collagen industry.