Living marine resources are limited; therefore, utilizing them sustainably is essential. Not all resources obtained from the sea are used adequately, causing discards, on-board waste, and by-products and waste on land. Recognition of the limited marine resources and increasing environmental pollution has emphasized the need for better utilization of by-products. Waste may include particles of flesh, skin, bones, entrails, shells or liquid stick water. Unfortunately, no fishery waste and by-product management initiatives or projects exist in Bangladesh; by-products are generally thrown into dustbins, ponds, rivers, and the sea. Bangladesh’s fish-processing waste and fishery by-products could be exported, providing a source of foreign currency earnings. Primary and secondary data were collected through documentary analysis, a literature review, and in-depth interviews (n = 129) with fishers and other relevant stakeholders regarding the challenges of Bangladesh’s sustainable fishery by-products and fish-processing waste. The data were analyzed thematically, guided by the most meaningful stories, and show that fish waste, or fishery by-products, should not be considered less valuable than the fish itself but is a precious and profitable resource capable of bringing health, social, economic, and environmental benefits. Our results reveal that fishery waste can expand local communities’, especially fishers’ and other workers’, potential for jobs or alternative income-generating tasks during fishing ban seasons. Finally, suggestions for managing fishery waste and fishery by-products are made to ensure improved and sustainable utilization via a circular bioeconomy.