Phycocyanin (C-PC) application by the industry is still limited due to extraction methods drawbacks and to the low stability of these compounds after the extraction process. To overcome such limitations, alternative extraction methodologies have been evaluated, and stabilizing agents have been used under different conditions in the past years. Therefore, the aim of this review was to bring the state of the art of C-PC extraction methods, including main parameters that affect the extraction process and cell disruption mechanisms, as well as the physical and chemical parameters that may influence C-PC stability. Stabilizing agents have been used to avoid C-PC content degradation during storage and food processing. A critical analysis of the extraction methods indicated that pulsed electric field (PEF) is a promising technology for C-PC extraction since the extracts present relative high C-PC concentration and purity. Other methods either result in low purity extracts or are time demanding. Regarding stabilizing agents, natural polymers and sugars are potential compounds to be used in food formulations to avoid color and antioxidant activity losses.