Bioactive peptides, derivatives of proteins, show versatile biological effects and represent potential health-promoting agents as functional food ingredients and/or nutraceuticals. Bone health depends on the balance between bone formation and resorption. When the balance is disrupted, bone diseases such as osteoporosis and fragility fractures may result. Accumulating evidence suggests that peptides derived from endogenous proteins and food proteins enhance bone health. This article reviews the literature on peptides exhibiting bone health-promoting effects. Possible biochemical mechanisms and production of these peptides are briefly discussed. PRACTICAL APPLICATIONS: Bioactive peptides are derived from food proteins via enzymatic hydrolysis, are already commercially available. In vitro and in vivo bone health-promoting effects of bioactive peptides have been shown in several animal models of osteoporosis and fractures. Thus, peptides can be used as functional food ingredients and/or nutraceuticals. However, their exact role and safety in human subjects should be evaluated prior to commercialization.