Byproducts from fish-processing industries are rich sources of collagen, which could be extracted and further hydrolyzed by specific proteolytic enzymes to liberate biologically active peptides. The interest for the production of collagen-derived biopeptides and their application in several fields, such as cosmetics, food additives, biomedical materials, and pharmaceuticals, has been increased during the past decade due to their wide range of biological activities, as well as their beneficial effects for humans. In fact, different activities have been attributed to collagen-derived peptides including antioxidant, antihypertensive, antimicrobial, cholesterol-lowering ability, hypoglycemic, anticancer, anti-aging, antifreeze, etc. The present review focuses on the bioactive peptides derived from fish collagen byproducts. It describes the processes of collagen and gelatin extraction as well as collagen peptides (CPs) production. This review provides also an overview on the biological properties of collagen peptides as well as their potential applications in functional foods and pharmaceutical industries.