Rice by-products, generated through the milling processes, have recently been recognized as a potential source of bioactive compounds, such as proteins, essential amino acids, and phenolics. Owing to their antioxidant capacity (which improve the storage stability of foods), these compounds have gained much attention because of their beneficial impacts on human health. It has to be noted that large quantities of rice by-products are not efficiently utilized, which may result in industrial wastes and environmental consequences. Thence, the aim of this review is to provide a comprehensive insight on the antioxidant capabilities, extraction, identification, functional attributes, and applications of bioactive hydrolysates and peptides derived from rice bran protein. This overview would provide an insight on rice bran proteins, which are abundant in bioactive peptides, and could be used as value-added products in food and pharmaceutical applications. Inclusion of bioactive peptides to prevent food spoilage while maintaining food safety has also been highlighted.