Agricultural by-products are gaining more attention for valorization through processing which can be very useful to human health. Flowers of all bananas including culinary banana is a by-product of postharvest cultivation and is a rich source of dietary fiber. This nutritional flower is consumed as cooked vegetables. Besides, consumption as vegetable, it is used to treat against several diseases because of its high medicinal value. Extraction of dietary fiber from banana flower and incorporation into a wide range of products contribute to the development of value-added foods or functional foods that meet the demand of dietary fiber supplement. It is also a good source of antioxidants and number of phytochemicals, which are desirable for human health. The phenolic rich extract of banana flower protects against oxidative stress-related diseases which were evidenced from the in vitro and in vivo studies. The colored bracts that are otherwise considered as agricultural residue are good source of anthocyanin. These bracts can be used as a natural source of food colorant which is currently in high demand. Hence, banana flower could be a promising source for formulating functional food with potential health benefits.