The marine ecosystem is a prosperous source of biological and chemical diversity which has been explored in the finding of unique chemicals having potential for industrial improvement as pharmaceuticals, cosmetics, nutritional supplements. Marine organisms consist of important number of novel secondary metabolites with potent pharmacological properties have been discovered. Most of the macroalgae have rich source of carotenoids, proteins, oligosaccharides, fatty acids, antioxidants, vitamins, and minerals, which are useful for medical and pharmaceutical industries. Especially, red algae are involved in photosynthesis and it also contains carrageenan, which is used for food and medicinal products. Hence, this review article is a concise of the antidiabetic effect of red algae and its bioactive components assessed in vivo and in vitro studies.