In the process of squid processing, a large number of by-products like viscera and cartilage are produced, which are rich in fat, protein and other nutrients. The research status and comprehensive utilization of oil from squid processing by-products were summarized in this review, from four aspects including biological activities, extraction, refining and microcapsulation. The development trend and research direction in the future were also prospected. In order to provide a theoretical reference for the further comprehensive development and utilization of oil in squid processing by-products and the rapid development of squid deep processing industry.