The food industry generates a large amount of wastes or by-products annually around the world from a variety of sources. By-products are the main raw materials for the formulation of functional foods in the food industry. Fruit and vegetable wastes are produced in large quantities in markets and their recovery could be employed for the production of nutraceuticals and functional foods. The food waste can be reduced by extraction of high components such as proteins, flavor compounds, and phytochemicals which can be re nutraceuticals ingredients. High potential nutraceutical from underutilized fruit parts was selected for the study. Mangosteen fruit rind contains xanthones which have antioxidant, anti and anti-microbial activity that are not reported in any other fruit. The pericarp or fruit hull of mangosteen rich in Xanthones from industrial waste were selected for the study. The physio-chemical properties of mangosteen rind were analyzed. The resultant properties of mangosteen rind were compared with the commercial sample, which complies with the specification.