Biotechnology is rapidly growing in recent years, which has endowed us in creating novelty in the field of seafood processing. The global seafood market is estimated to achieve a growth of USD 730.28 billion by the year 2030 at a Compounded Annual Growth Rate (CAGR) of 8.92%. Application of biotechnology in seafood processing and product development promises a good future. This chapter summarizes the efficient use of marine-derived byproducts for use in the food industry and human nutrition, which could lead to a zero-waste economy concept as well as the application of biotechnology for sustainable seafood production processing and value addition. In addition to satisfying customer demand, the employment of diverse biotechnological tools to improve fish production through various breeding and culture techniques also contributes to the improvement of the number and quality of fish produced in aquaculture systems. Apart from improvement in culture-based techniques, biotechnology opens different possibilities to recover all sources of nutritional and functional compounds from seafood and its byproducts. The extraction and utilization of these functional ingredients in the food system can help combat malnutrition, thereby contributing to the creation of a healthier population.