Soybean is a rapidly growing agricultural crop, fueled by the rising global demand for animal feed, plant‐based proteins and essential nutrients for human consumption. Soybeans contain a wide range of essential nutrients that are vital for health and may play a significant role in disease prevention. Their nutritious composition has led to a diverse range of soy‐based foods and derivatives available on the market. A substantial amount of soybeans is allocated to the animal feed sector, human consumption, nutraceuticals and other industrial applications. Soybean has superior protein quality and digestibility compared to other legumes. It also contains abundant amounts of isoflavones, phytosterols and minerals that augment its nutritional value as a constituent of the human diet. Many different by‐products are produced during the processing of soy. Due to a lack of sustainable food manufacturing practices, a sustainable amount of these by‐products is discarded as waste, posing environmental challenges. Developing an effective waste management system for soybean by‐products can help address public health concerns and provide a cost‐efficient way to repurpose valuable components of soy, such as soy meal, okara and soy whey. Such valorization can mitigate the environmental impact of waste and contribute to malnutrition. This study aims to evaluate the sustainable use of soy by‐products to help preserve biodiversity and reduce food insecurity. This article thoroughly examines the fundamental components of soybean use in the fields of health and soybean by‐product processing. It provides a summary of cost‐efficient, feasible and ideal processing technologies. © 2024 Society of Chemical Industry.