Potatoes are the third most consumed vegetable globally, which may be due to their availability, affordability, desirability, and convenience, especially for the low-income population. But the potato is also sadly the most wasted and discarded vegetable. The production of value-added potato products, such as purees, chips, French fries, frozen foods, and hash browns, results in significant waste generation due to the peeling process. Throughout history, potato has been a staple in various culinary traditions, yet one of its most frequently overlooked components is the peel. The amount of losses (15–40%) caused by peeling of potato depends on the method used, i.e., abrasion, steam, or lye peeling. Potato peels are enriched in various macro- as well as micronutrients. Various health benefits from different dietary sources help protect the heart, reduce inflammation, and combat various bacterial as well as protozoal infections. In the cosmetics industry, potato peels (PPs) have shown various benefits against the aging process and antioxidant activity, which leads to new horizons in coming generations. Overall, the incorporation of potato peels into one’s diet can lead to enhanced nutritional intake and better health outcomes, which also contribute to sustainable food practices by reducing waste. In short, researchers can recognize potato peels as a lucrative component of a healthy diet. Further clinical trials in the future should be focused on validating various reported health claims, examining the potential pathway for the nutritional activity of the compounds present, and developing innovative ways to incorporate potato peels into the daily diet.