Fucoxanthin, an allenic carotenoid, is abundant in macro and microalgae as a component of the light-harvesting complex for photosynthesis and photo protection. This carotenoid has shown important pharmaceutical bioactivity, exerting antioxidant, anti-cancer, anti-diabetic, anti-obesity, anti-photoaging, anti-angiogenic, and anti-metastatic effects on a variety of biological models. This carotenoid has been proven to be safe for animal consumption, opening up the opportunity of using this bioactive compound in the treatment of different pathologies. In this paper, an updated account of the research progress in biosynthetic pathway and health benefits of fucoxanthin is presented. Meanwhile, a review on the various methods of extraction of fucoxanthin in macro and microalgae is also revisited. According to these studies providing important background knowledge, fucoxanthin can be utilized into drugs and nutritional products.