Nowadays, microalgal research is predominantly centered on an industrial scale. In general, multipotent bioactive peptides are the advantages over focal points over utilitarian nourishment as well as nutraceuticals. Microalgal peptides are now profoundly connected with biological properties rather than nutritive. Numerous techniques are employed to purify active peptides from algal protein using enzymatic hydrolysis; it is broadly used for numerous favorable circumstances. There is a chance to utilize microalgal peptides for human well-being as nutritive enhancements. This exhaustive survey details the utilization of microalgal peptides as antioxidant, anti-cancerous, anti-hypersensitive, anti-atherosclerotic, and nutritional functional foods. It is also exploring the novel technologies for the production of active peptides, for instance, the use of algal peptides as food for human health discovered restrictions, where peptides are sensitive to hydrolysis protease degradation. This review emphasizes the issue of active peptides in gastrointestinal transit, which has to be solved in the future, and prompt impacts.