Seaweed polysaccharides are natural biomacromolecules with unique physicochemical properties (e.g., good gelling, emulsifying, and film‐forming properties) and diverse biological activities (e.g., anticoagulant, antioxidant, immunoregulatory, and antitumor effects). Furthermore, they are nontoxic, biocompatible and biodegradable, and abundant in resources. Therefore, they have been widely utilized in food, cosmetics, and pharmaceutical industries. However, their properties and bioactivities sometimes are not satisfactory for some purposes. Modification of polysaccharides can impart the amphiphilicity and new functions to the biopolymers and change the structure and conformation, thus effectively improving their functional properties and biological activities so as to meet the requirement for targeted applications. This review outlined the modification methods of representative red algae polysaccharides (carrageenan and agar), brown algae polysaccharides (fucoidan, alginate, and laminaran), and green algae polysaccharides (ulvan) that have potential food applications, including etherification, esterification, degradation, sulfation, phosphorylation, selenylation, and so on. The improved functional properties and bioactivities of the modified seaweed polysaccharides and their potential food applications are also summarized.