Fish provides a low-caloric content, polyunsaturated fatty acids, many essential trace elements and is also a rich source of protein, ranging from 10% to 25%. Therefore, the production of FPH (fish protein hydrolysates) is of great interest, as the resulting products exhibit a variety of important bioactive and technological properties, making them potential ingredients for new functional foods and supplements. The aim of this review was to compile and analyze information on enzymatic hydrolysates, with particular emphasis on those derived from fish by-products, as a potential ingredient in human nutrition. Their nutritional characteristics, food safety aspects, bioactive properties, technological attributes, key influencing factors, and applications in food products were evaluated. The findings revealed that these properties are influenced by several factors, such as the raw material, enzymes used, degree of hydrolysis, and the molecular weight of the peptides, which need to be considered as a whole. In conclusion, the gathered information suggests that it is possible to obtain high-value products through enzymatic hydrolysis, even when using fish by-products. However, although numerous studies focused on FPH derived from fish muscle, research on by-products remains limited. Further investigation is needed to determine whether the behavior of FPH from by-products differs from that of muscle-derived FPH.