Edible film and coating are nutritious and beneficial for the host as those are consumed with food. Among various edible films and coatings, this review focused on protein-based films and coatings due to their potential application as a carrier for bioactive compounds in the food and biomedical industries. Bioactive compounds such as probiotics, prebiotics, and phenolic compounds have shown promise in maintaining intestinal health. They enhance immune response, lower inflammation in gastrointestinal illnesses, and help to prevent colon cancer. However, these bioactive compounds are often susceptible to environmental factors such as temperature, oxygen, pH etc. Consequently, encapsulation of these compounds becomes essential to protect them from potential damage and ensure the delivery of these compounds into the host body while retaining their intended functional properties. Current trends involve incorporating phenolic compounds into films or encapsulating probiotics and prebiotics as core materials using different wall materials. These encapsulated compounds can be intake with the food. Ongoing research endeavors are dedicated to improve the mechanical properties or functional properties of edible films and coatings separately. This review aims to overcome existing limitations of encapsulation of bioactive compounds into various types of protein film and enhance the functionality and health benefits and unlock the application of protein-based edible films and coating in the food industry.