SummaryThis study explores the potential of hydrothermal extraction as an innovative valorisation method for the simultaneous production of gelatin and fish oil from fish byproducts. It offers an environmentally friendly alternative to conventional solvent‐based techniques by minimising the use of chemical solvents and water. We researched various major commercial freshwater fish species: striped catfish, catfish, and tilapia, and achieved a gelatin product that reflects commercial standards in chemical structure, gel strength, and pH level. The striped catfish gelatin showed the highest gel strength and viscosity (66.01 ± 0.83 g bloom and 15.3 ± 0.1 cP), but was produced at a lower yield than the catfish gelatin. On the other hand, striped catfish produced the highest yield of fish oil (13.56 ± 0.21%) and has the highest omega 3 content (3.72 ± 0.02%) than other fish oil. This innovative study demonstrates the potential of hydrothermal extraction as a sustainable method for producing gelatin and fish oil, offering eco‐friendly and nutritional benefits across a range of applications.