This comprehensive review paper explores the multifaceted landscape of halal gelatin, focusing on its pivotal role in various industries and the challenges and opportunities it presents in the context of sustainable sourcing, regulatory compliance, and future advancements. Halal gelatin, derived from sources compliant with Islamic dietary laws, serves as a critical ingredient in food, pharmaceuticals, cosmetics, and other sectors, catering to the needs of Muslim consumers worldwide. Traditional gelatin extraction methods often raise concerns regarding ethical and religious principles, driving the exploration of alternative and sustainable sources, such as plant-based, microbial, and waste-derived options. Advancements in extraction techniques, including enzymatic hydrolysis and supercritical fluid extraction, offer promising avenues for halal gelatin production while minimizing environmental impact and ensuring compliance with halal certification requirements. However, obtaining halal certification presents its own set of challenges, including source ambiguity, cross-contamination risks, and the need for transparent labelling and traceability throughout the supply chain. Despite these challenges, the halal gelatin industry continues to evolve, driven by a growing global market and increasing consumer awareness of ethical and sustainable practices. Collaboration among stakeholders, including industry players, certification bodies, and academia, is essential to address these challenges, drive innovation, and foster responsible practices in the halal gelatin industry. In conclusion, halal gelatin represents not only a dietary necessity but also a symbol of cultural integrity, sustainability, and ethical business practices, shaping the future of diverse industries while respecting religious and environmental considerations.