Fruits and vegetables are the main fresh produce that receive high demand among consumers because of the nutritional properties to boost the human health. However, not all fruits and vegetables are durable due to the ongoing release of ethylene even when harvested. Damaged produce will not be accepted by the customer and will cause post-harvest losses. It was estimated that about 30% of fruits and vegetables are damaged or affected by microorganisms, insects, pre- and post-harvest conditions during transportation and improper storage conditions. Edible coating is an effective approach for fruit preservation. It provides good barrier properties towards carbon dioxide, oxygen, and moisture vapor and at the same time beneficial for the environment and human health. The aim of this review is to investigate the potential of red macroalgae (Kappaphycus alvarezii) as an edible fruit coating. This edible red macroalgae abundant in Sabah is widespread around the world due to their carrageenan properties. Carrageenan is normally used as the main edible coating material due to its thickening stability and natural antioxidant. The carrageenan film from these algae is able to replace synthetic packaging and is more environmentally friendly. The abundant source of this algae in Sabah will ensure sustainability and cost effectiveness besides increasing the socio-economy of the local community. Red macroalgae has potential to be used as a bio preservative in fresh produce as it shows better quality characteristics in physicochemical properties of fruits such as weight loss, colour and firmness.