Tomatoes are consumed both in raw, as salad and processed form. The popular processed products of tomato are ketchup, sauce, salsa, puree, juice and soup.During processing of tomato in to various products 10-30 per cent of their weight becomes waste or pomace which mainly constitutes its peel and seeds. The by-products of tomato processing industries (peels and seeds) pose a problem in its disposal, more so when it is wet. Many studies carried out to assess the potential of utilization of by-products for their inclusion in human diet showing promising results in reduction of the industrial costs and also controlling the pollution problem connected with food processing. A study was conducted to estimate tomato waste generated while processing by different methods, standardize extraction process of lycopene and use it for fortification. Wet and dry peel were used directly for extraction of lycopene using organic solvent and also by enzymatic pre-treatment before solvent extraction. The extracted lycopene was used for fortification of tomato beverages (juice and soup) and changes in their nutritive quality was studied during storage.