The present study focuses on the green extraction methods and the evaluation of the biological properties of pectin and essential oils derived from citrus peel waste, aiming to both add value to these byproducts and manage waste effectively. Citrus peels are abundant in bioactive compounds, rendering them an innovative resource for transforming waste into value-added products. Pectin, a non-starch polysaccharide, and essential oils, consisting of volatile aromatic compounds, present opportunities for diverse industrial applications, depending on the extraction methods and raw material sources. This research integrates recent advancements in sustainable extraction technologies with a comprehensive review of peer-reviewed literature to compare the physicochemical properties and biological activities of pectin and essential oils from diverse citrus species. Key aspects investigated include the efficiency of different green extraction methods, the impact of raw material variation on product quality, and the potential for novel applications in functional foods, natural preservatives, and therapeutic agents. The systematic review highlights how the synergy between the physicochemical attributes and biological activities of citrus peel derivatives can drive their applications in functional foods, natural preservatives, therapeutic agents, and other industrial applications. By integrating recent advancements in sustainable extraction technologies, the importance of leveraging waste-derived compounds to achieve both economic and environmental goals, thus supporting the development of environmentally sustainable practices within the citrus industry.