The structural, physicochemical, and functional properties of potato residue with different mesh sizes (<180 µm, <150 µm, <106 µm, <75 µm, ultrafine) obtained from starch isolation were investigated, and its effects on the shear strength, tensile strength, cooking time, and in vitro digestibility of 5% potato residue-based starch noodles were further compared. The results showed that the protein, ash, dietary fiber, water holding capacity, and water solubility of fractionated potato residue were decreased with decreasing particle size, while the starch, fat, polyphenols, and α-amylase activity inhibition ratio were increased. Ultrafine particles exhibited the highest phenolic content (2.26 mg chlorogenic acid equivalent/g), glucose adsorption capacity (7.03 mmol/g), cholesterol adsorption capacity (16.54%), and better performance on starch noodles formulation. However, oil holding capacity and microstructure did not show any significant differences. Therefore, potato residues with desired particle sizes could be successfully used to develop fiber-enriched food products for reducing food waste.