Marine-derived polysaccharides have sparked immense interest in the nutraceutical industry as they possess a wide range of bioactivities which are highlighted in this review. These include antioxidants, anti-inflammatory, anti-cancer, gut microbiota regulator, anti-diabetic, and anti-obesity. Algae, marine invertebrates, vertebrates, and microorganisms are the main sources of marine polysaccharides, such as alginate, fucoidan, laminarin, carrageenan, chitosan, glycosaminoglycans, and exopolysaccharides. The structure and functional groups of these compounds influence their bioactive properties. Moreover, the functional properties of polysaccharides, such as gelling, thickening, and stabilising capabilities, are also crucial in product development, where they can serve as gluten substitutes in bakery goods and stabilisers in icings, sauces, and yoghurts. The potential of commercial products under development, such as marine polysaccharide supplements, is discussed, along with already commercialised products in the nutraceutical market. This review emphasises the enormous potential of marine-derived polysaccharides as bioactive compounds with health benefits and commercial value.