Bananas are widely popular as a key member of the Musaceae family and also considered a rich source of several nutrients, especially bioactive compounds. Besides, bananas are extensively grown in tropical and subtropical regions and are easily available for various use cases, that is, food industry and health benefits. Other than banana, its by‐products such as peel, pseudo‐stems, leaves, and blossoms are also rich in several nutrients, for example, carbohydrates, protein, dietary fiber, vitamins, and so on. Moreover, their consumption intends to provide several therapeutic benefits, particularly the dietary fiber and phenolic compounds. Furthermore, bananas and their by‐products have been found to possess antimicrobial, anticancer, and antioxidant activities. In spite of countless benefits, these residues are often discarded as waste. Observing these benefits, the current review focuses on the broad range of bioactive chemical and pharmacological elements in bananas and their by‐products. Also, this work focuses on their use in several food industries. As a result of the findings, the presented review reveals several innovative aspects of bananas and their products which can be utilized as a sustainable source of income for the agriculture industry.