<p>Fermentation is a widely recognized traditional method to improve preservation and functional characteristics of food. Probiotics are microorganisms that, in addition to ferment foods, offer significant health benefits to the host. Fermentation also recognized for biotransformation of food substances into bioactive compounds. In particular, proteins in the food substrate are hydrolyzed into small peptides by proteases produced by microorganisms during fermentation. These peptides, also known as “bioactive peptides”, could offer several health benefits, ranging from antioxidant properties to anticancer effects, enhancing the well-being of the host. Thus, fermenting protein-rich food substrates with probiotic microorganisms offers the combined benefits of both probiotics and bioactive peptides. This review discusses recent research advancement in generating bioactive peptides through probiotic fermentation of food, emphasizing its feasibility and sustainability. It details advancements in fermentation methods and innovative technologies, explores the characterization and health benefits of fermentation-derived bioactive peptides, and offers future research directions. This review positions fermentation as a viable alternative to enzymatic hydrolysis, offering insight into its role for producing bioactive peptides with possible health benefits and encouraging further research into probiotic foods enriched these peptides.</p>