Dietary fiber is crucial for improving general health, lowering the risk of chronic illnesses, and maintaining gut health. However, there are serious environmental problems associated with the widespread disposal of fruit and vegetable by-products, including peels, pomace, and seeds. These byproducts contain a wealth of soluble and insoluble fibers, such as cellulose, hemicellulose, and pectin, which may be extracted and used in a variety of industrial and culinary applications. The creation of functional meals, biodegradable edible packaging, and nutritional supplements is made possible by advanced techniques such as enzymatic and ultrasound-assisted technologies, which facilitate effective fiber recovery. This strategy satisfies the growing customer demand for natural, fiber-enriched products while promoting sustainability, waste reduction, and the circular economy. This chapter attempts to create a comprehensive lab guide to standardized recovery and extraction of dietary fiber. It offers entrepreneurs, food technologists, and researchers detailed instructions, safety precautions, and formulation methods for creating fiber products with additional value. In addition to encouraging sustainability and economic expansion, the manual ensures uniformity, quality, and repeatability in fiber extraction and application. It encourages innovation, improves food security, and opens up new revenue streams for farmers and small enterprises by bridging the gap between research and real-world application. This helps to preserve the environment and promote a more robust global food system.