Green technology applications in food waste management have paved the way for bioactive compounds extraction and their utilization in the food industry. In current study, antioxidants were extracted from banana peels through nonthermal techniques, and identified and quantified using LC-ESI-QTOF-MS/MS. The extract was added to yogurt (at the rate of 0.5, 1.0, and 1.5%), and quality was assessed. Antioxidant activity, total phenolic content, and taste were improved with altering pH (3.89–5.17) and titratable acidity (1.85–1.09%) while syneresis (30.10–25.2%) and fermentation bacteria decreased. Mineral and color parameters were marginally altered. Therefore, the shelf life of yogurt could be enhanced with BPAE, perhaps transforming it into a rich-textured nutraceutical product.