Trash fish from the Visakhapatnam coast are emerging as promising sources of bioactive peptides with antioxidant, antihypertensive, antimicrobial, and anti-inflammatory activities. These peptides, released through enzymatic hydrolysis, possess functional properties linked to their specific amino acid composition. Although traditionally discarded or used in low-value applications, these underutilized species are rich in quality proteins suitable for peptide production. Enzymes like alcalase and papain have proven effective in generating biologically active hydrolysates. In vitro assays and advanced tools such as LC-MS/MS and bioinformatics platforms further support the potential of these peptides. However, gaps remain in species-specific characterization, in vivo validation, and industrial application. Valorizing these marine resources offers a sustainable pathway for developing functional foods and nutraceuticals while supporting circular bioeconomy initiatives.