Fish by-products can account up to 75% of total weight of fish catch, harvested or processed. Despite their high economic value, by-products have been used mainly for the production of low-value products resulting in a low profit for the fish industry. Thus, it is imperative to develop efficient and effective technologies for the recovery of valuable ingredients from fish by-products. The main focus of this thesis was to develop a simple hydrolysis process to extract valuable compounds and liberate bioactive peptides from fish by-products of fish species endemic to Australia as well as exploring the essential physiological properties of these bioactive peptides, especially their potent use for colon cancer treatment.