In the context of climate change, the need to ensure food security and safety has taken center stage. Chemical fertilizers and pesticides are traditionally used to achieve higher plant productivity and improved plant protection from biotic stresses. However, the widespread use of fertilizers and pesticides has led to significant risks to human health and the environment, which are further compounded by the emissions of greenhouse gases during fertilizer and pesticide production and application, contributing to global warming and climate change. The naturally occurring sulfated linear polysaccharides obtained from edible red seaweeds (Rhodophyta), carrageenans, could offer climate-friendly substitutes for these inputs due to their bi-functional activities. Carrageenans and their derivatives, known as oligo-carrageenans, facilitate plant growth through a multitude of metabolic courses, including chlorophyll metabolism, carbon fixation, photosynthesis, protein synthesis, secondary metabolite generation, and detoxification of reactive oxygen species. In parallel, these compounds suppress pathogens by their direct antimicrobial activities and/or improve plant resilience against pathogens by modulating biochemical changes via salicylate (SA) and/or jasmonate (JA) and ethylene (ET) signaling pathways, resulting in increased production of secondary metabolites, defense-related proteins, and antioxidants. The present review summarizes the usage of carrageenans for increasing plant development and defense responses to pathogenic challenges under climate change. In addition, the current state of knowledge regarding molecular mechanisms and metabolic alterations in plants during carrageenan-stimulated plant growth and plant disease defense responses has been discussed. This evaluation will highlight the potential use of these new biostimulants in increasing agricultural productivity under climate change.