The time when plant biostimulants were considered as “snake oil” is erstwhile and the skepticism regarding their agricultural benefits has significantly faded, as solid scientific evidences of their positive effects are continuously provided. Currently plant biostimulants are considered as a full-fledged class of agri-inputs and highly attractive business opportunity for major actors of the agroindustry. As the dominant category of the biostimulant segment, seaweed extracts were key in this growing renown. They are widely known as substances with the function of mitigating abiotic stress and enhancing plant productivity. Seaweed extracts are derived from the extraction of several macroalgae species, which depending on the extraction methodology lead to the production of complex mixtures of biologically active compounds. Consequently, plant responses are often inconsistent, and precisely deciphering the involved mechanism of action remains highly intricate. Recently, scientists all over the world have been interested to exploring hidden mechanism of action of these resources through the employment of multidisciplinary and high-throughput approaches, combining plant physiology, molecular biology, agronomy, and multi-omics techniques. The aim of this review is to provide fresh insights into the concept of seaweed extract (SE), through addressing the subject in newfangled standpoints based on current scientific knowledge, and taking into consideration both academic and industrial claims in concomitance with market’s requirements. The crucial extraction process as well as the effect of such products on nutrient uptake and their role in abiotic and biotic stress tolerance are scrutinized with emphasizing the involved mechanisms at the metabolic and genetic level. Additionally, some often overlooked and indirect effects of seaweed extracts, such as their influence on plant microbiome are discussed. Finally, the plausible impact of the recently approved plant biostimulant regulation on seaweed extract industry is addressed.