As a result of globalization and increasing population the sector of food processing industry has risen very fast in most countries around the world. The food processing plants generates significant amount of waste in the form of seed coat, hull, husk, peels, seeds, pomace, bran and press cakes when various raw materials viz. fruits, vegetables, milk, cereals and animals are converted into value added products. These agricultural by-products are rich sources of several nutrients including functional fibres, proteins etc. and if these are not utilized or disposed off properly can cause environmental issues. Therefore, the need of the current hour is to utilize aforementioned waste for value addition and human consumption which will lead to maximum benefit to the industries, environment and the consumers. This chapter summarizes findings on the development of novel food products through utilization of different types of agriculture and dairy by-products.