Fruits and vegetables are the highly used food products amongst the horticultural crops. These items are consumed uncooked, nominally cooked or fully cooked, according to their nature and cooking process. With the change in diet habits and rising population, the production, as well as the processing of horticultural crops, has exponentially improved to meet its increasing demand. A large amount of peel waste is generated from fruit and vegetable-based industries and household kitchen and has led to a big nutritional and economic loss and environmental problems. Processing of fruits and vegetables alone generates a significant waste, which amounts to 25–30% of the total product. Most common wastes include pomace, peels, rind and seeds, which are highly rich in valuable bioactive compounds such as carotenoids, enzymes, polyphenols, oils, vitamins and many other compounds. These bioactive compounds show their application in various industries such as food to develop edible films, food industries for probiotics and other industries for valuable products. The utilization of these low-cost waste horticultural wastes for producing the value-added product is a novel step in its sustainable utilization. The present review intends to summarize the different types of waste originating from fruits as well as vegetables peels and highlight their potential in developing edible films, probiotics, nanoparticles, carbon dots, microbial media, biochar and biosorbents.