Challenges in managing agricultural and food wastes (AFWs) have been exacerbated by the rapid growth of the global population. Poorly managed AFWs, including residues from crops, livestock, and agro-industries, pose a significant environmental challenge and public health risks. Nonetheless, effective utilization of AFWs depicts their substantial potential as valuable resources. The present review explores the possible valorization processes of various types of AFWs, focusing on sustainable approaches to reuse and recycle these materials. The transformation of AFWs into value-added products, such as animal feed, organic fertilizers, mulches, insect farming, bioenergy, food fortificants, edible coatings, upcycled foods, and food donation has been thoroughly discussed in the present review. Furthermore, the contribution of sustainable management AFWs toward environmental sustainability, economic growth, and improved food security has been highlighted by the promotion of circular economy principles. The present review concludes by accentuating the need for strategic planning, government support, and continued research to accomplish the benefits of AFWs valorization.