Sugarcane (Saccharum officinarum) is one of the most widely cultivated crops globally, with a primary focus on sugar production. However, the processing of sugarcane generates substantial quantities of by-products, including bagasse, molasses, press mud (filter cake), and vinasse. Traditionally considered waste or limited to uses in energy generation and animal feed, these by-products are now gaining recognition for their nutritional and functional value in food systems. Bagasse, being rich in dietary fiber, has potential as a functional ingredient in bakery and health food products. Molasses, a mineral-rich syrup, is increasingly explored for use in beverages and functional foods due to its antioxidant content. Press mud, although less studied, contains vital nutrients and organic compounds suitable for fortification. Vinasse, a by-product of ethanol production, shows promise in fermentation-based functional ingredients. Utilizing these by-products contributes to the circular economy by minimizing food waste, reducing environmental pollution, and promoting sustainability in the food industry. This review examines the chemical composition, food applications, processing requirements, health benefits, safety concerns, and environmental implications of integrating sugarcane by-products into food systems. By valorizing these by-products, the food industry can address both nutritional challenges and ecological responsibilities, offering a pathway toward more sustainable and functional food solutions.