Seaweed cultivation is gaining global significance due to its nutritional, pharmaceutical, and environmental benefits. However, large-scale commercialization faces challenges such as processing inefficiencies, high investment costs, supply chain issues, weak regulations, and concerns about ecological sustainability. Conventional extraction methods often degrade nutrients and reduce bioavailability of key compounds, which affects product quality and profitability. Additionally, the absence of global regulatory standards and consumer awareness limits market expansion and trust. Although mass production is considered sustainable, it can harm marine ecosystems and biodiversity if not properly managed. This paper explores technological, economic, and environmental challenges in commercializing seaweed and evaluates improved extraction techniques, economic feasibility, and sustainable farming practices. The literature review covers both traditional and modern extraction methods, alongside regulatory and economic conditions in seaweed-producing nations like India. Findings reveal that advanced bioactive extraction methods improve nutrient preservation and yield. Hydrogels derived from seaweed have diverse applications in agriculture and industry, contributing to coastal economies and marine biodiversity. Despite existing barriers such as technological limitations, logistical inefficiencies, and low consumer awareness, seaweed remains a promising resource with economic and environmental potential. Future research should focus on scaling processing technologies, strengthening regulatory systems, promoting public awareness, and adopting eco-friendly farming practices to enable responsible commercialization. The study highlights the role of seaweed in the global blue economy. With technological innovation and consistent policy support, seaweed can enhance food security, climate resilience, and global competitiveness, positioning India as a leader in sustainable marine bioeconomy.