Background <p>Bioactive peptides generated from food have great potential as functional foods and dietary supplements. Several publications in the past few years described bioactive peptides/hydrolysates generated from various food sources.</p> Purpose and Results <p>This review discussed bioactive peptides or protein hydrolysates present in plants and their by-products. This review also highlights the characterization and bioactivities of active peptides gained from the above sources. In addition, this investigation focused on both common extraction methods (e.g., enzymatic hydrolysis and fermentation) and novel extraction approaches for active peptides, such as high hydrostatic pressure (HHP), microwave-assisted, ultrasonic-assisted, pulsed electric field (PEF), and subcritical water techniques. Bioinformatics tools employed for investigating and identifying potential bioactive peptides were also researched. The possible food applications, bioavailability, in vivo studies, and regulatory considerations have also been investigated. Additionally, the current review addresses concerns regarding the challenges and limitations associated with bioactive peptides.</p> Conclusion <p>Bioactive peptides derived from plants have multifunctional qualities that make it possible to create new and healthful food products.</p>