Food waste and loss is a growing global issue, but repurposing materials that would otherwise be discarded into new foods can improve nutritional status and promote sustainable food production. This project explores the development of foods containing ingredients that would be normally wasted during fruit and vegetable processing. Three different muffin samples were developed containing banana flesh, banana peels only and a combination of the two. Colour, texture and moisture of the developed products were tested. The analysis showed that the combined sample containing both banana peels and flesh had the highest values for springiness, firmness, and moisture, but no differences were found in the colour between samples. The ranked preference test by consumers revealed that the combined sample was the most preferred sample amongst the participants (n = 50). Friedman test revealed that there was a significant difference in the product-related factors affecting purchase intent, with taste being the most important one. This study revealed that the inclusion of banana peels into baked goods, resulted in the development of a product acceptable by the consumers while also reducing food waste.