The passion (Passiflora edulis Sims) fruit peel is rich in phenolics and other bioactive compounds and has great potential as a natural food preservative. The present study investigated the value-adding potential of passion fruit peel waste generated on an organic farm. The effect of carriers in encapsulating the peel extract to develop a polyphenolic-rich powder was investigated. The passion fruit peel extracts were prepared using 70% ethanol (1:10 w/v), and encapsulated using waxy starch (WS), gum arabic (GA), and maltodextrin (MT) before freeze-drying. The effects of carriers on the passion fruit peel powder (PFPP) production yield, physicochemical, rheological, phytochemical, and antioxidant properties were investigated. GA-and MT-encapsulated powders had better physical, phytochemical, and antioxidant properties, including yield, total soluble solids, solubility, bulk density, total phenolic content, and ferric reducing antioxidant powder. A total of 18 metabolites, including phenolic acids (10), flavonoids (6), and stilbenes (2), were tentatively identified in all the PFPP samples, with WS exhibiting a higher concentration of the compounds compared to GA and MT. Our results indicated that no single carrier was associated with all the quality attributes; therefore, better results could be produced by compositing these carriers. Nonetheless, our results highlight the potential of passion fruit peels as a source of polyphenols and functional ingredient in formulating natural food additives.