The current study evaluated the effect of pomegranate peel-based edible coating on chicken nuggets in order to develop a functional and safe product, high in nutritional value. For this purpose, 2,2-diphenyl-1-picrylhydrazyl (DPPH) and total phenolic content (TPC) assays were performed to check the potential antioxidant activity of chicken nuggets; microbial control, including total aerobic count and coliforms population, was performed for quality and safety purposes; and thiobarbituric acid reactive substances (TBARS) and peroxide value (POV) were performed to determine the oxidative stability of chicken nuggets. Different treatments were applied at different storage periods (0th, 7th, 14th and 21st day). The higher value of total aerobic count (5.09 ± 0.05 log CFU/g) and coliforms (3.91 ± 0.06 log CFU/g) were obtained for the uncoated samples, while the lower population was enumerated in the combination of sodium alginate (SA) and pomegranate peel powder (PPP). However, DPPH (64.65 ± 2.15%) and TPC (135.66 ± 3.07 GAE/100 g) values were higher in the coated chicken nuggets (SA (1.5%) and PPP (1.5%)) and lowest in the control samples. The higher value of TBARS (1.62 ± 0.03 MDA/kg) and POV (0.92 ± 0.03 meq peroxide/kg) were observed in the uncoated chicken nuggets. In the Hunter color system, L*, a*, and b* peak values were determined in the coated chicken nuggets with SA (1.5%) + PPP (1.5%) at the 21st day of storage. The uncoated chicken nuggets had different sensory characteristics (appearance, color, taste, texture, and overall acceptability) compared to the coated samples. Conclusively, coating based on the combination of SA (1.5%) and PPP (1.5%) increased the quality, safety, and nutritional properties of chicken nuggets.