The study was conducted with the aim of extraction and characterization of gelatin from fish waste (skin) and its application on yogurt and peanut butter syneresis. The global demand for gelatin has been increasing over the years, because it has broad applications in the food, pharmaceutical, photographic, cosmetic and packaging industries. In the food industry, gelatin is used as an ingredient to enhance the elasticity, consistency and stability of food products. It is also used in some medical and biotechnological applications. So, the present study aims to extract fish gelatin from the fish processing waste. The qualitative and quantitative parameter includes proximate analysis (viz. moisture, fat, protein, ash and pH), viscosity, and iso-ionic point studies were done on the extracted fish gelatin from skin. It was found that, the extracted fish gelatin is well suited to exploit gelatin, which can be used in the food industry. It is recognized as a good source of high quality collagen that can be employed to manufacture functional food, medicine and cosmetic products. Gelatin was extracted from tilapia skin with a Temperature, Time and Water to skin ratio 57.07°C, 15:00 hrs and 1/3 respectively. Yield of Extraction: 5.68 % per 100 g of fish skin, Moisture: 11.96 %, Viscosity: 7.42 cPS, Fat: 1.97 %, Ash: 1.91%, Crude protein: 77.01%, pH: 4.95, iso-ionic point: 8.09, Stabilizer: 1.5%, yogurt syneresis: 33.3%, Peanut butter syneresis: 6.1%. The gel strength of gelatin was 246.43 g.