In the past few years, we have been very familiar with the waste hierarchy concept of the 3 R’s, Reduce, Reuse and Recycle. This review article aims to suggest a possible way to reuse the agro-waste sector. It will focus on the zero waste food industry. While consuming our day-to-day food unknowingly we throw away some of the important portions of fruits and vegetables which can help us fight diseases and stay healthy. Therefore, we need proper management to utilize these beneficial components present in those fruit scrapes. An abundant amount of food waste is been produced during the processing of food from the different food industries. In addition to this, agro wastes like peels, seeds, etc. are also generated from fruit and vegetable agriculture. This paper mainly focuses on the agro-waste of the food industry, which can be consumed when the bioactive compound is extracted and is available as a functional food. The bioactive compounds have the potential to control blood pressure, diabetes, inflammation, etc. Thus, by incorporating these bioactive compounds we can enhance the quality of food. Recently functional food is consumed by a large population for its beneficial effect on our body.