Dietary fiber, the indigestible part of plants, has been shown to reduce the risk of certain diseases. However, banana waste, which contains beneficial compounds like dietary fiber, is often discarded into the environment. The pseudostem of the banana plant is cut and becomes waste biomass after the banana fruit ripens and is harvested. If not properly managed, these wastes can cause problems for the environment. This crop waste can be utilized in a more sustainable way as a source of cellulose fiber for various applications. Banana fiber, also known as pseudostem lignocellulosic fiber or dietary fiber, is a composite material consisting of cellulose, hemicellulose, lignin, pectin, wax, and other components. There are different techniques available for extracting banana fiber, depending on the plant part and the desired amount of fiber. Fiber extraction methods vary widely in effectiveness, output, and environmental impact. Generally, these techniques fall into four categories: manual, mechanical, chemical, and biological. Among these, biological (enzymatic) extraction is the most widely used technique. This chapter outlines the various methods of fiber extraction, with an emphasis on and a detailed explanation of the verified and commonly used enzymatic extraction technique for dietary fiber.