Banana peel has immense nutritious properties as well as contains antioxidants in significant amount. This  research aimed to demonstrate the nutritional value of banana peel powder (BPP) by emphasizing its antimicrobial and antioxidant properties. In addition, use (BPP) as a cost-effective substitute for wheat flour in a cake. In addition, the findings of BPP at various concentrations (1%, 4%, 7%, and 10%) were compared to critical quality properties such as the cake's physical, chemical, and microbial properties, as well as its sensory properties. More than 50.7% of the total weight of the banana fruit as waste can be used as a good source of macro and micronutrients, antimicrobials, and antioxidants in food processing, according to the present findings. In addition, the BPP is an excellent source of protein (15.10%) and ash (25.19%). The substitution of wheat flour with BPP resulted in the addition of significant quantities of natural antioxidants to the cake production process, particularly in samples containing 7 and 10 percent BPP. These antioxidants have a variety of positive effects on human health and act as antimicrobial agents to extend the shelf life of the cake product. The organoleptic consistency characteristics of the cake revealed a marginally significant difference between the control sample and those containing up to 4 percent BPP for all organoleptic properties measured and designated as excellent in comparison to the control sample. As a result of this discovery, it is suggested that cakes containing up to 10 percent BPP have numerous health benefits and improves their flavor.