Keratin is a structural fibrous protein and the core constituent of animal by-products from livestock such as wool, feathers, hooves, horns, and pig bristles. This natural polymer is also the main component of human hair and is present at an important percentage in human and animal skin. Significant amounts of keratin-rich animal tissues are discarded worldwide each year, ca. 12 M tons, and the share used for keratin extraction and added-value applications is still very low. An important stream of new potential raw materials, represented by animal by-products and human hair, is thus being lost, while a large-scale valorization could contribute to a circular bioeconomy and to the reduction in the environmental fingerprint of those tissues. Fortunately, scientific research has made much important progress in the last 10–15 years in the better understanding of the complex keratin architecture and its variability among different animal tissues, in the development of tailored extraction processes, and in the screening of new potential applications. Hence, this review aims at a discussion of the recent findings in the characterization of keratin and keratin-rich animal by-product structures, as well as in keratin recovery by conventional and emerging techniques and advances in valorization in several fields.