A large number of by-products or wastes are produced worldwide through various food industries. These wastes cause a serious disposable problem with the environment. So, now a day’s different approaches are used for alternative use of these wastes because these by-products are an excellent source of various bioactive components such as polyphenols, flavonoids, caffeine, carotenoids, creatine, and polysaccharides etc. which are beneficial for human health. Furthermore, the composition of these wastes depends on the source or type of waste. Approximately half of the waste is lignocellulosic in nature produced from food processing industries. The dissimilar types of waste produced by food industries can be fortified by various processes. Fermentation is one of the oldest approaches and there are three types of fermentation processes that are carried out such as solid state, submerged and liquid fermentation used for product transformation into value added products through microorganisms. Selections of the fermentation process are product specific. Moreover, various studies were performed to obtain or fortified different bioactive compounds that are present in food industries by-products or wastes. Therefore, the current review article discussed various sources, composition and nutritive value (especially bioactive compounds) of these wastes and their management or augmentation of value-added products through fermentation.