Fucoxanthin is a xanthophyll pigment which occurs in marine brown seaweeds (macroalgae), diatoms and several microalgae species. It forms with chlorophyll a-c and several proteins, a major fucoxanthin-chlorophyll a/c complex, which transfers light energy to the photosynthesis center and plays a major role in light harvesting. Recent studies have reported that fucoxanthin has many physiological functions and biological effects, such as anti-obesity, antidiabetic, anti-inflammatory, anticancer and cardiovascular system protection. Therefore, this pigment is highly preferred for the prevention and treatment of various chronic diseases. In addition, potential applications of high value fucoxanthin can be found in cosmetic, food and feed industries. In this review paper, the historical development, characteristic properties and possible sources of fucoxanthin are extensively described. The potential biological activities of fucoxanthin are also discussed. Finally, brief overview of common applications and market analysis of commercial fucoxanthin are also reported.