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Carrageenan is an algal‐originated group of polysaccharides with unusual structural and functional capabilities, desired for different biomimetic applications due to their renewable, biocompatible, and biodegradable nature. Carrageenan‐based hybrids (nano‐/biocomposites) with different biopolymers and nano‐structured materials have been widely reported as potential candidates for bone/cartilage tissue engineering, delivery of drugs/bioactive ingredients, wound healing, and 3D bioprinting applications. Owning to the broad‐scale biomimetic applications of carrageenan‐based materials, this review aims to summarize carrageenan chemistry and distinct physicochemical features of biopolymeric and/or nanostructured materials‐based on carrageenans in a detailed manner. Herein, different biopolymers (such as chitosan, cellulose, starch, and alginates), and nano‐structured materials (such as silica nanoparticles, magnetic/non‐magnetic nanocarriers, graphene oxide nanoparticles, carbon nanotubes/nanorods, metal oxide nanoparticles) are comprehensively described in combination with carrageenan. However, carrageenan toxicity studies have presented major challenges that need to be addressed when using carrageenan‐based materials for biomedical and therapeutic purposes. Several existing challenges, prospects, and research recommendations are described at the end of this review.