Pullulan is a commercially available exopolymer biosynthesized by Aureobasidium pullulans supplemented with nitrogen, carbon and other vital components through submerged and solid-state fermentation. These nutrients are very expensive and it raises the cost for the production of pullulan. Hence, the need of alternative cost-effective raw materials for its production is a prerequisite. Owing to its unique physicochemical features, pullulan has various applications in the food, pharmacological, and biomedical domains. Food industrial wastes generate a considerable number of by-products which accumulates and has a negative influence on the environment. These by-products are made up of proteins, carbohydrates, and other components, can be employed as substrates for the production of pullulan. The present review briefs on the pullulan production using food processing waste and by-products and the elements that impact it. It provides an insight into versatile applications of pullulan in food industries. Various challenges and future prospects in the field of research on pullulan production have been uncovered.