Avocado seeds, which are often discarded as waste, are actually rich in bioactive components and potential health benefits and are considered effective and sustainable resources for industrial applications. In general, it is enriched in starch, protein, lipids, vitamins, minerals, and other biomaterials. It also possesses numerous health-promoting properties, including antioxidant, anti-cancer, anti-diabetic, anti-neurogenerative, and antimicrobial effects. This chapter explores the significance of avocado seed within a broader context of underutilized seeds, focusing on the aforementioned attributes. It further highlights the diversified characteristics of avocado seeds, including nutritional composition, bioactive properties, various extraction methods ranging from innovative methods to green approaches, industrial application, environmental impact and sustainability, global trade and consumer demand, policies and regulations and their future perspectives. Overall, this chapter is expected to reduce the gap between laboratory analysis of functional components of avocado seeds and their practical application at the industrial level and further contribute to a more resilient and circular bio-economy.