BACKGROUNDThe purpose of this study was to evaluate the potential of incorporating wine lees (WL), an inexpensive and widely available high‐value winery waste product, into gelatin‐based jellies to improve their technological and functional properties. We also aimed to evaluate the suitability of WL as a jelly colorant by comparing it with a commercial colorant.RESULTSWine lees were characterized for their anthocyanin, phenolic, antioxidant, and mineral content. Subsequently, physicochemical, functional, textural, rheological, and thermal analyses were conducted on soft candies containing 21, 14, and 7 g kg−1 WL (labeled as WL30, WL20, and WL10, respectively). The total phenolic, anthocyanin, antioxidant, and cupric‐reducing antioxidant capacity (CUPRAC) values of WL30 were determined as 57.80 ± 6.12 mg gallic acid equivalent per kilogram (GAE kg−1), 17.58 ± 0.36 mg malvidin‐3‐glucoside equivalent kg−1, 0.04 ± 0.01 μg mL−1, and 45.55 ± 1.00 mmol L−1 Trolox equivalent (TE), respectively. The control sample had the best rheological characteristics, including K′, G', and n*, as well as the greatest hardness value, followed by WL30. However, during the storage period, WL30 exhibited superior color stability and retained higher levels of phenolic and anthocyanin components in comparison with the control sample.CONCLUSIONWine lees have the potential to be utilized as a natural colorant and alternative flavoring agent in jelly production. © 2023 The Authors. Journal of The Science of Food and Agriculture published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry.