Squalene is a bioactive compound with significant health benefits, predominantly found in extra virgin olive oil (EVOO) and its processing by-products. This critical review explores the analytical determination of squalene in EVOO and various by-products from olive oil production, highlighting its potential as a valuable ingredient in functional foods. An overview of existing analytical methods is provided, focusing on different approaches to sample preparation before analytical determination, evaluating their effectiveness in quantifying squalene concentrations. Studies not primarily centered on analytical methodologies or squalene quantification were excluded. A critical gap identified is the absence of an official method for squalene determination, which hinders comparability and standardization across studies, underscoring the importance of developing a reliable, standardized method to ensure accurate quantification. The valorization of squalene involves advocating for its extraction from olive oil processing by-products to enhance sustainability in the olive oil industry. By recovering squalene, the industry can not only reduce waste but also enhance functional food products with this health-promoting compound. Additionally, there is a need for economically sustainable and environmentally friendly extraction techniques that can be scaled up for industrial application, thus contributing to a circular economy within the olive oil sector.