Proposals for sustainable use of meat industry waste and by-products have seen a remarkable growth in recent decade. This paper aims to shed light on the often-overlooked realm of meat by-products, positioning them as an invaluable source of bioactive peptides and functional ingredients. It emphasized on the first part the main strategies for valorization of meat industry by-products into diverse bioactive peptides, and then it introduces in the second part the diverse and current methods of identification and characterization of bioactive peptides and protein hydrolysates. While the promise of these macromolecules is immense, the paper focuses and takes an in-depth look in the third part at the regulatory and safety barriers hindering their efficient valorization. By addressing regulatory and safety concerns, this review aims to pave the way for a more sustainable and responsible utilization of meat by-products, ensuring not only the economic viability of the meat sector, but also fostering a holistic and safe approach towards enhanced food and animal production sustainability.