Sea cucumbers are well demarcated for their valuable role in the food, pharmaceutical, nutraceutical, and cosmeceutical sectors. The demand for well-processed dried sea cucumber retaining quality is prioritized by local markets and industries. There are several techniques for the pre-processing of fresh sea cucumbers, including traditional and modern methods, such as salting, boiling, high-pressure processing, high-pressure steaming, and vacuum cooking, among others, in order to inactivate enzymes and microbial attacks. Further, pre-treated sea cucumbers require post-processing before human consumption, transportation, or industry uses such as hot air, freeze, cabinet, sun, or smoke drying. However, despite the ease, traditional processing is associated with several challenges hampering the quality of processed products. For instance, due to high temperatures in boiling and drying, there is a higher chance of disrupting valuable nutrients, resulting in low-quality products. Therefore, the integration of traditional and modern methods is a crucial approach to optimizing sea cucumber processing to obtain valuable products with high nutritional values and retain bioactive compounds. The value of dried sea cucumbers relies not only on species and nutritional value but also on the processing methods in terms of retaining sensory attributes, including colour, appearance, texture, taste, and odour. Therefore, this review, for the first time, provides insight into different pre- and post-treatments, their perspective, challenges, and how these methods can be optimized for industry use to obtain better-quality products and achieve economic gains from sea cucumber.