The plant-based oil industry contributes significantly to food waste/by-products in the form of underutilized biomass, including oil pomace, cake/meal, seeds, peels, wastewater, etc. These waste/by-products contain a significant quantity of nutritious and bioactive compounds (phenolics, lignans, flavonoids, dietary fiber, proteins, and essential minerals) with proven health-promoting effects. The utilization of them as natural, cost-effective, and food-grade functional ingredients in novel food formulations holds considerable potential. This review highlights the potential of waste/by-products generated during plant-based oil processing as a promising source of bioactive compounds and covers systematic research, including recent studies focusing on innovative extraction and processing techniques. It also sheds light on their promising potential for valorization as food ingredients, with a focus on specific examples of food fortification. Furthermore, the potential for value creation in the food industry is emphasized, taking into account associated challenges and limitations, as well as future perspectives. Overall, the current information suggests that the valorization of plant-based oil industry waste and by-products for use in the food industry could substantially reduce malnutrition and poverty, generate favorable health outcomes, mitigate environmental concerns, and enhance economic profit in a sustainable way by developing health-promoting, environmentally sustainable food systems.