Carrot (Daucus carota L.) is a root vegetable that is available worldwide in a variety of colors and sizes. It has been reported that the use of carrots in the treatment of various diseases has provided various therapeutic benefits. During its processing, a large quantity of waste is generated, including pomace, peel, core, and tops. By-product valorization has been shown to decrease the environmental load and utilize the nutrients in an effective way. Fortunately, it is a commodity with zero waste, as all of its by-products can be utilized in various ways. All by-products of carrot contain rich quantities of phytochemicals, antioxidants, fibers, phenolic compounds, antioxidants, minerals, and vitamins. Extraction of phenolic compounds from its by-products has also been applied and used in various food product formulations. Carrot waste is also rich in alpha (α)- and beta (β)-carotenoids. Due to the high nutrient availability in the waste, carrot by-products are also incorporated into various food products to increase the bioavailability of nutrients and dietary fibers. Sensory profiling of these applications has also presented satisfactory results with improved texture and acceptability. Therefore, carrot by-product utilization/processing to produce value-added products has been extensively studied and applied. There is a dire need to improve the process and increase the value addition of these wastes globally.