In recent years, there has been an increase in consumer demand for nutraceutical-enriched meals, prompting the food sector to pursue logical strategies to accommodate this need. A bioactive peptide is a small fragment of 2 to 20 amino acids that can positively moderate human physiological functions and is derived from a parent protein. Most bioactives peptides have a low solubility, which makes them difficult to use in different foods. Nanoparticulation of bioactive peptides have successfully increased their functional properties. Some short peptide building blocks, such as cyclic peptides, aromatic dipeptides, surfactant-like oligopeptides, and cationic dipeptide, have clearly demonstrated that peptide nanoparticles have a promising potential in the development of biomedicine and nanobiotechnology as antimicrobial or drug delivery agents. Acid induced gelation, desolvation, pH-driven, ultrasonication, and liquid-liquid dispersion techniques have been successfully applied for peptidic nanoparticle formation from different sources.