The Mediterranean area is one of the major global producers of agricultural food. However, along the entire supply chain—from farming to food distribution and consumption—food waste represents a significant fraction. Additionally, plant waste residues generated during the cultivation of specific fruits and vegetables must also be considered. This heterogeneous biomass is a valuable source of bioactive compounds and materials that can be transformed into high-performance functional products. By analyzing technical and scientific literature, this review identifies extraction, composite production, and bioconversion as the main strategies for valorizing agricultural by-products and waste. The advantages of these approaches as well as efficiency gains through digitalization are discussed, along with their potential applications in the Mediterranean region to support new research activities and bioeconomic initiatives. Moreover, the review highlights the challenges and disadvantages associated with waste valorization, providing a critical comparison of different studies to offer a comprehensive perspective on the topic. The objective of this review is to evaluate the potential of agricultural waste valorization, identifying effective strategies while also considering their limitations, to contribute to the development of sustainable and innovative solutions in Mediterranean bioeconomy.