Enzymes are widely used in industry due to their high efficiency and selectivity. However, their low stability during certain industrial processes can result in a significant loss of catalytic activity. Encapsulation is a promising technique that can stabilize enzymes by protecting them from environmental stresses such as extreme temperature and pH, mechanical force, organic solvents, and proteases. Alginate and alginate-based materials have emerged as effective carriers for enzyme encapsulation due to their biocompatibility, biodegradability, and ability to form gel beads through ionic gelation. This review presents various alginate-based encapsulation systems for enzyme stabilization and explores their applications in different industries. We discuss the preparation methods of alginate encapsulated enzymes and analyze the release mechanisms of enzymes from alginate materials. Additionally, we summarize the characterization techniques used for enzyme-alginate composites. This review provides insights into the use of alginate encapsulation as a means of stabilizing enzymes and highlights the potential benefits for various industrial applications.