This study aimed to investigate the physicochemical characteristics and sensory perception of pudding with banana peel addition. Banana peel from two varieties, Ambon and Kepok, was incorporated into pudding formulation with a concentration of 3% and 6%, respectively. All samples were analyzed for physicochemical properties (moisture content, dietary fiber content, texture, color, and syneresis) and sensory penalty analysis using the JAR (Just About Right) method. Pudding with Ambon peel addition was superior in dietary fiber content, hardness, and sensory acceptance. However, pudding with Kepok peel performed better lightness and syneresis. Higher banana peel concentration significantly increased dietary fiber content and overall liking but significantly decreased pudding syneresis. The JAR penalty analysis revealed that the lightness and the banana and milk aromas affected the products’ overall liking. Pudding with 6% Ambon peel showed an optimum performance among samples, containing 88.76% moisture content, 5.57% dietary fiber, 1.29 N hardness, 2.5% syneresis, and 7.14 hedonic score, indicating this product was perceived as like by panellist. According to the mean drops analysis, this product should improve the lightness and milk aroma to gain consumer acceptance.