The concept of zero waste discharge has been gaining importance in recent years towards attaining a sustainable environment. Fruit processing industries generate millions of tons of byproducts like fruit peels and seeds, and their disposal poses an environmental threat. The concept of extracting value-added bioactive compounds from bio-waste is an excellent opportunity to mitigate environmental issues. To date, significant research has been carried out on the extraction of essential biomolecules, particularly polysaccharides from waste generated by fruit processing industries. In this review article, we aim to summarize the different extraction methodologies, characterization methods, and biomedical applications of polysaccharides extracted from seeds and peels of different fruit sources. The review also focuses on the general scheme of extraction of polysaccharides from fruit waste with special emphasis on various methods used in extraction. Also, the various types of polysaccharides obtained from fruit processing industrial wastes are explained in consonance with the important techniques related to the structural elucidation of polysaccharides obtained from seed and peel waste. The use of seed polysaccharides as pharmaceutical excipients and the application of peel polysaccharides possessing biological activities are also elaborated.