Anything fishy smells, tastes, or resembles a fish in some way. Suspicious people and situations are also called fishy. Since this word has two meanings, context is key. If you say something is fishy, it probably means you think something is suspicious.
What does it mean if something is fishy?
1 : of or resembling fish especially in taste or odor. 2 : creating doubt or suspicion : questionable.
How do you describe fishy?
The WR Dictionary suggests "suspicious, doubtful, or questionable" as a more formal version. I don't think I'd use "fishy" so much in the literal sense; I'd be more likely to say that something "smells of fish".