Pomegranate (Punica granatum L.) is an ancient fruit and a commodity favored by people worldwide for its unique shape and flavor. Pomegranate peel is a major by-product from the juicing process with rich health-promoting bioactive compounds (mainly polyphenol content) but remains underutilized or disposed of. The main goal of this dissertation was to study the extraction of functional ingredients from pomegranate peel waste, evaluate their nutritional benefits, and develop value-added nutritional products. A novel green process for antioxidant extraction from wet pomegranate peel (WPP) was developed. The effects of various extraction conditions on polyphenol yield and quality were investigated, including particle size, time, temperature, and solvent ratios. WPP extraction at 20°C for 6 min with a solvent (water) ratio of 4:1 is recommended as an economic and sustainable process, resulting in 10.53% total phenolic yield (TPY) with 6.35 g g-1 tannic acid equivalent (TAE) and 88.93% punicalagin (most unique and potent polyphenol in pomegranate) purity. Plant bioactive compounds have demonstrated promising effects in promoting health. Therefore, the hypolipidemic effects of pomegranate peel powder (PPP) and pomegranate peel extract (PPE) were researched via Lakeview Golden (LVG) Syrian hamsters with a high-fat (20%) diet. PPP and PPE significantly improve obesity-related indices, including adjusting microbiota composition, increasing the microbiota diversity towards a leaner type, and down-regulating the expression of 2 genes (HMG-CoAR and LDLR) to reduce cholesterol ingestion and LDL uptake. However, further research on potential toxicity was required, as adverse plasma LDL-elevating effects were observed at a higher dose of PPP and PPE intake. As functional food fortified with plant bioactive compounds became more popular, the potential of PPE as ingredients for fortified food supplementation was evaluated. A PPE-fortified Greek Style yogurt was developed using a top-down formulation method based on USDA dietary guidelines. According to the results from response surface methodology, the optimum formula for a 130 g (4.6 oz) product consisted of 10.4 g (8%) of protein and 77 g (59%) of PPE, which could satisfy the polyphenol daily need (1g per day) while maintaining pleasant product properties. An organic acid-based ultrasound-assisted co-extraction process of polyphenol and pectin was investigated for thorough WPP utilization and broader industry applications. Citric acid was applied for extraction since it’s a common GRAS acid in food applications. Process conditions, including pH, extraction temperature, extraction time, ultrasound intensity, and solvent ratio, were evaluated via Box-Behnken design to study the effects on extraction performance, including polyphenol/pectin yield, antioxidant activity, and pectin characteristics. High methylated (Degree of methylation up to 79.66%) pectin yield was as high as 13.99%, which demonstrated that WPP could be utilized as a reliable pectin source. The extraction kinetics were characterized for future industry application guidance. In conclusion, this dissertation demonstrated the potential of pomegranate peel to be utilized as a source of healthy and bioactive compounds.