Banana peel extract as a source of phenolic compounds was fortified in yogurts. The addition of extract in yogurts exhibited a dose-dependent relationship and had significantly (p < .05) higher TPC, DPPH•, and ABTS + • scavenging ability, α-glucosidase inhibitory activity than control yogurts. The value of TPC, ABTS + •, and DPPH• scavenging ability, and α-glucosidase inhibitory activity of 100 µl extract-fortified yogurts were 502.40 ± 9.29 mg GAE/kg yogurt, 61.09 ± 2.66%, 70.69 ± 3.66%, and 54.21 ± 0.60%, respectively, at 28 days of refrigeration storage. The fortification of extract in yogurts significantly reduced the lipid oxidation and increased the viscosity, respectively, but had no significant influence on color, syneresis, pH, and lactic acid of the yogurts during storage. The extract up to 600 µl per 100 g yogurts received "like very muchˮ liking score by sensory evaluation. The study demonstrated that banana peel extract has the potential to be used as functional food ingredients for promoting human health and extending the shelf life of the products. Novelty Impact Statement: • Yogurts had significantly increased total phenolic content and exerted high antioxidant and antidiabetic activities on fortification of banana peel extract as sources of phenolic compounds. • Fortification of extracts did not affect yogurt's quality parameters (color, pH, acidity, and whey separation), but significantly delayed lipid oxidation during storage.