ABSTRACT Jellyfish are vital components of marine ecosystems and significantly impact human life and industry. Globally, jellyfish populations are increasing annually, but their applications are currently limited primarily to food processing. Jellyfish contain various peptides and proteins that humans can utilize because of their unique biological structures and compositions. In particular, jellyfish are rich in bioactive peptides that intrigue researchers. Jellyfish bioactive peptides can be categorized functionally into toxin peptides, neuropeptides, antioxidant peptides, angiotensin‐converting enzyme (ACE) inhibitory peptides, and antimicrobial peptides (AMPs), each with distinct physiological roles, such as inflammation, apoptosis, ion pathway, reproduction, and vision. They are demonstrated to have valuable pharmacological potential against various diseases, including neurodegenerative disorders, wound healing, osteoarthritis and cancer, and are candidate for nutraceuticals. This review primarily summarizes the reported bioactive peptides from jellyfish, improving our understanding of their potential pharmacological effects and nutraceutical activities, which may promote the further utilization and development of bioactive peptides from jellyfish.