The Indian food colorant market is projected to achieve a CAGR of 5.3% by 2027, significantly impacted by synthetic colorants. This highlights the urgent need for safer, natural alternatives in response to increasing consumer health concerns. This project focuses on the innovative extraction and stabilization of betalains from beetroot waste, a typically underutilized by-product in the food industry. Utilizing ultrasound-assisted extraction, we significantly optimized the yield and efficiency of betalain extraction, reducing both time and solvent usage compared to conventional methods. Key innovations include: Ultrasound-Assisted Cold Extraction: This method enhances the extraction of bioactive pigments by utilizing ultrasound waves, which create cavitation effects that improve solvent penetration and disrupt cell structures, leading to higher yields of betacyanins and betaxanthins. Lyophilization for Stabilization: The extracted betalains are stabilized through lyophilization, a process that removes moisture under vacuum, preserving the bioactive properties of betalains while preventing degradation caused by heat or chemical exposure. Encapsulation with Polysaccharides: The use of maltodextrin and xanthan gum as encapsulation agents is a significant innovation. This combination not only increases encapsulation efficiency but also enhances the stability and antioxidant activity of betalains, providing a robust solution for their application in functional food products. Comprehensive Evaluation of Microcapsules: The project thoroughly evaluates the physicochemical properties of the microcapsules, including moisture content, water activity, bulk density, release profile, moisture sorption isotherm, and color, ensuring that the final product meets industry standards for stability and functionality. Sustainability Aspect: By valorizing food waste, this project contributes to sustainable food processing practices, The project contributes to Solid waste management rule (SWM 2016), Waste to Wealth mission of India and Sustainable Development Goals (SDGs) 12 (Responsible Consumption and Production), 3 (Good Health and Well-being), and 9 (Industry, Innovation, and Infrastructure) by promoting the valorization of food waste and enhancing the nutritional profile of functional food products aligning with global efforts to minimize waste and maximize the utility of agricultural by-products.