The chestnut is a widely appreciated fruit in Europe, Asia, and North America, playing a significant role in the diets of people in these regions. Due to its high nutritional value and diverse health benefits, chestnuts have been gaining considerable research attention. The aim was a comprehensive literature review on the nutritional benefits of chestnuts and the sustainable valorization of their by-products. Following the methodology, all the relevant literature was collected and reviewed. Based on the reviewed data, the chemical composition of chestnuts holds great importance, especially in the food industry, where understanding their nutritional properties can enhance product development. Furthermore, chestnut processing generates a substantial amount of waste, including shells and leaves, which are rich in bioactive compounds with antioxidant properties. Valorizing these by-products presents opportunities for their application across various industries, leading to increased profits, reduced environmental pollution, and enhanced sustainability. This review aims to provide insights into the nutritional benefits of chestnuts and chestnut by-products and explore potential alternative applications for these materials in the food industry. Such applications will possibly positively affect producers’ income and are in line with the circular economy strategy.