Common bean (Phaseolus vulgaris L.) is a pulse cultivated worldwide and it is considered a nutraceutical food and a good source of protein. In the last decade, pulses have gained attention to produce bioactive hydrolysates and peptides. Common bean hydrolysates and peptides have been reported to perform mainly angiotensin I converting enzyme inhibition, antioxidant capacity, and antimicrobial and tumor cell inhibition activities. In this paper, we review the biological activities, the factors that can modify the effectiveness of the hydrolysates and peptides present in common bean, as well as the proposed mechanisms of action and the perspectives of the production of common bean protein hydrolysates to be used as a functional ingredient.