Purpose of Review <p>Food waste is produced in large quantities by the food processing industries, and these leftovers contain many beneficial functional properties and bioactive compounds. This review focuses on exploring the utilization of food waste in food packaging applications.</p> Recent Findings <p>Utilization of food processing waste is an emerging technology for creating active food packaging. The use of food waste leads to a reduction in environmental load and enhancement of the properties of packaging material. Food processing waste includes peels, pomace, kernels, seeds, husks, and shells, among others. Numerous bioactive substances, including lipids, antioxidants, antimicrobial agents, and polyphenols, can be found in food waste. The advanced extraction and incorporation techniques are employed.</p> Summary <p>In this review paper, we have addressed the various bioactive compounds found in food waste. The extraction techniques are utilized to extract active compounds from waste, and the incorporation techniques are employed for the application of bioactive compounds on food products. Here, we have included numerous research studies that demonstrate the positive impact of food waste on the characteristics of materials used for packaging food products. Intending to enhance&#xa0;the shelf life of food items, this article emphasizes the significance of using waste from food manufacturing industries for applications related to food packaging.</p> Graphical Abstract <p></p>