In this review, we aim to provide a summary of recent research advancements and applications of algin (i.e., alginic acid) and alginate-hybrid materials (AHMs) in medical fields. Algin/alginate are abundant natural products that are chemically inert and biocompatible, and they have superior gelation properties, good mechanical strengths, and biodegradability. The AHMs have been widely applied in wound dressing, cell culture, tissue engineering, and drug delivery. However, medical applications in different fields require different properties in the AHMs. The drug delivery application requires AHMs to provide optimal drug loading, controlled and targeted drug-releasing, and/or visually guided drug delivery. AHMs for wound dressing application need to have improved mechanical properties, hydrophilicity, cell adhesion, and antibacterial properties. AHMs for tissue engineering need improved mechanical properties that match the target organs, superior cell affinity, and cell loading capacity. Various methods to produce AHMs that meet different needs were summarized. Formulations to form AHMs with improved stability, drug/cell-loading capacity, cell adhesion, and mechanical properties are active research areas. This review serves as a road map to provide insights into the strategies to develop AHMs in medical applications.