Fish and shellfish waste streams (FSW) contain high quantities of valuable hydrocolloids, including collagen, -gelatin, bioactive peptides, chitin, chitosan, chitooligosaccharides, and glycosaminoglycans. Implementing -innovative extraction technologies, such as high hydrostatic pressure, pulse electric fields, and ultrasound, holds great possibilities in the extraction of high-quality hydrocolloids from FSW. The extracted hydrocolloids pose marked potential as biomaterials and functional substances for application in food and pharma industries. However, despite the well-documented potential of FSW for hydrocolloid extraction, a significant gap remains between laboratory-scale extraction and industrial implementations. This review provides a critical assessment of the current revolutionary technologies employed for the extraction of hydrocolloids from FSW, positioning them as sustainable ingredients for advanced food and pharmacological applications. In addition, off-flavor formation in obtained products and innovative removal strategies are critically presented. This review will further advance the industrial application of both innovative technologies and the obtained valuable compounds, and bridge the gap between industrial operations and laboratory studies.