The fruit production and processing sectors produce tremendous amounts of by-products and waste that cause significant economic losses and an undesirable impact on the environment. The effective utilization of these fruit wastes can help to reduce the carbon footprint and greenhouse gas emissions, thereby achieving sustainable development goals. These by-products contain a variety of bioactive compounds, such as dietary fiber, flavonoids, phenolic compounds, antioxidants, polysaccharides, and several other health-promoting nutrients and phytochemicals. These bioactive compounds can be extracted and used as value-added products in different industrial applications. The bioactive components extracted can be used in developing nutraceutical products, functional foods, or food additives. This review provides a comprehensive review of the recent developments in fruit waste valorization techniques and their application in food industries. The various extraction techniques, including conventional and emerging methods, have been discussed. The antioxidant and antimicrobial activities of the active compounds extracted and isolated from fruit waste have been described. The most important food industrial application of bioactive compounds extracted from fruit waste (FW) has been provided. Finally, challenges, future direction, and concluding remarks on the topic are summarized.