Chinese bayberry (Myrica rubra Sieb. et Zucc.) fruit (CBF) is widely growing in eastern Asia, mainly in China. CBFs contain a high number of polyphenols, especially anthocyanins. However, CBF can be easily damaged and cannot be stored for more than 3 days at 20–22 °C and 9–12 days at 0–2 °C. Thus, this review explores the potential options for the long-term preservation and consumption of CBFs, as well as the importance of CBF by-products. The review also addressed the biological activity of CBFs and their food products. The consumption period of CBF can be increased by employing a variety of processing techniques, including rapid freezing, drying, juicing, making wine and vinegar, and adding it to meals. Additionally, oil and bioactive substances can be extracted from the CBF by-products, such as kernel and pomace. The greatest options to extend the duration of CBF ingestion are thought to be CBF powder, juice, and wine. Furthermore, CBFs and their derivatives exhibit many biological activities such as antibacterial, anticancer, antidiabetic, and antioxidant properties. The two biological activities that were most potent were antidiabetic and antioxidant. However, more biological research, particularly clinical-based research, is advised to investigate the potential health benefits of CBF and its products.