In the present study, we aimed to improve the quality of wheat flour biscuits by amending defatted sesame cake. Fifty per cent incorporation of defatted white sesame and black sesame into biscuits improved protein, fat, crude fiber, mineral, and reduced the carbohydrate level. The textural attributes and color characteristics of the white sesame‐amended biscuits (WSB) were similar to that of the control biscuits. WSB scored highest upon subjecting to sensory evaluation over black sesame‐amended biscuits (BSB) and panelists scored them equal to the control biscuits. The likability of WSB was also revealed in consumer preference survey. Both WSB and BSB fortification improves the storability of biscuits by reducing the microbial contamination. Also the aqueous and methanolic extracts of 90‐day stored biscuits were non‐toxic to cell line (L929). Hence, it is proposed that defatted sesame cake incorporation enhances the nutritional and functional characteristics of biscuits and is also safe to consume. Practical applications Sesame cake is oil industry waste which contains considerable amount of valuable compounds such as proteins, minerals, dietary fiber, and vitamins. Nowadays, utilization of food industry waste into valuable dietary products is becoming challenging. Several traditional sesame products are available in the local markets which are made up of sesame whole seeds or sesame oil. Utilization of defatted sesame cake in preparing healthy bakery products is less explored. This study demonstrates the feasibility of using sesame cake (black/white) in development of biscuits as a promising healthy bakery product item for all age group. Also, the current approach also enhances the economy of sesame‐based industries by providing value to defatted sesame cake.