Potato is the fourth main crop consumed worldwide and is an important constituent in the human diet. Consequently, potato is widely used in food-processing industries. However, these industries generate massive amounts of potato peel (PP) as a by-product, which is usually considered a waste, and is discarded. Interestingly, recent research suggests that PP is a valuable source of bioactive compounds, which can be converted into value-added products. In this study, we review the physicochemical composition and valorization of PP. In addition to being used as a dietary fiber or medicine, the value-added products obtained by the fermentation of PP have multiple uses, including their use as adsorbents, biocomposites and packaging materials. These products can also be used in energy production, biopolymer film development, corrosion inhibition and the synthesis of cellulose nanocrystals. The biorefinery approach for PP will increase the value of this waste by producing an array of value-added products and reducing extensive waste generation.