Purpose <p>The ever-growing poultry processing industry produces substantial amounts of by-products, particularly chicken giblets, which are often remained underutilized. The high-value nutritional configuration of chicken giblets promotes its wrathful utilization and value addition. Effective utilization of these byproducts can reduce the disposal cost and generates value added products in addition.</p> Methods <p>Therefore, in the present study a standardized hydrolysis process was used to develop a chicken giblet-protein hydrolysate-based protein-rich powder. The pressure-cooked giblets were enzymatically hydrolyzed using the papain enzyme under optimized conditions to produce protein hydrolysate. To enhance the functional quality of the hydrolysate, it was added with 5% maltodextrin as carrier agent followed by freeze-drying to get final hydrolysate powder. The resultant powder was assessed for various physicochemical and sensory parameters. To make the product economical and to improve the sensory acceptability the carrier-hydrolysate powder was blended with the ripened-pineapple powder. The developed hydrolysate-extended protein powder was evaluated for its nutritional and functional quality and storage stability. At every15 days interval various microbiological parameters of the powder were assessed under ambient storage condition.</p> Result <p>The study concluded that the protein rich (43.96%), nutritionally and functionally superior and sensorially acceptable chicken–giblet protein hydrolysate powder, when packaged in LDPE pouches, remained acceptable in terms of microbial quality for up to 60 days at ambient temperature.</p> Conclusion <p>This study demonstrates a sustainable, nutritionally and functionally beneficial way of poultry byproducts utilization.</p>