The valorization of food waste biomass for the extraction of bioactive compounds presents a sustainable solution to global food waste challenges while offering significant economic and environmental benefits. This review comprehensively examines advanced green extraction technologies such as ultrasound-assisted extraction (UAE), microwave-assisted extraction (MAE), supercritical fluid extraction (SFE), and enzyme-assisted extraction (EAE) for recovering polyphenols, carotenoids, flavonoids, and other high-value compounds from fruit, vegetable, cereal, and animal-derived waste. Highlighting optimized extraction parameters showed that modern techniques outperform conventional methods in yield, efficiency, and cost-effectiveness, with UAE reducing manufacturing costs by up to 84% compared to Soxhlet extraction. The review also addresses pretreatment strategies, purification innovations (e.g., flash chromatography), and emerging solvents like natural deep eutectic solvents (NADES) with lower environmental impact, higher efficiency, recyclability and biodegradability. Challenges such as contamination risks, temperature sensitivity, and scalability are critically analyzed, alongside future directions integrating nanotechnology, artificial intelligence, and hybrid extraction systems. By bridging gaps in waste classification, compound identification, and process optimization, this study underscores the potential of food waste as a resource for pharmaceuticals, nutraceuticals, and functional foods, aligning with circular economy goals and sustainable development.