The increased pressure over soils imposed by the need for agricultural expansion and food production requires development of sustainable and smart strategies for the efficient use of resources and food nutrients. In accordance with worldwide transformative polices, it is crucial to design sustainable systems for food production aimed at reducing environmental impact, contributing to biodiversity preservation, and leveraging a bioeconomy that supports circular byproduct management. Research on the use of emergent protein sources to develop value-added foods and biomaterials is in its infancy. This review intends to summarize recent research dealing with technological functionality of underused protein fractions, recovered from microbial biomass and food waste sources, addressing their potential applications but also bottlenecks. Protein-based materials from dairy byproducts and microalgae biomass gather promising prospects of use related to their techno-functional properties. However, a balance between yield and functionality is needed to turn this approach profitable on an industrial scale basis. In this context, downstream processing should be strategically used and properly integrated. Food solutions based on microbial proteins will expand in forthcoming years, bringing the opportunity to finetune development of novel protein-based biomaterials.