Chestnut (Castanea sativa) shells (CSs), an undervalued agro-industrial biowaste, have arisen as a source of bioactive compounds with promising health-promoting effects. This study attempted, for the first time, to develop a functional food, namely cookies, using a CS extract obtained by an eco-friendly technology (subcritical water extraction). The cookies were characterized regarding their nutritional composition, total phenolic and flavonoid contents (TPC and TFC, respectively), antioxidant/antiradical activities, phenolic profile, and sensory evaluation. The results demonstrated that the CS-extract-enriched cookies were mainly composed of carbohydrates (53.92% on dry weight (dw)), fat (32.62% dw), and fiber (5.15% dw). The phenolic profile outlined by HPLC-PDA revealed the presence of phenolic acids, flavonoids, and hydrolysable tannins, attesting to the high TPC and TFC. The in vitro antioxidant/antiradical effects proved the bioactivity of the functional cookies, while the sensory evaluation unveiled excellent scores on all attributes (≥6.25). The heatmap diagram corroborated strong correlations between the TPC and antioxidant/antiradical properties, predicting that the appreciated sensory attributes were closely correlated with high carbohydrates and phenolic compounds. This study encourages the sustainable recovery of antioxidants from CSs and their further employment as an active nutraceutical ingredient in functional cookies., This work received financial support from national funds (UIDB/50006/2020), project PTDC/ASP-AGR/29277/2017-Castanea sativa shells as a new source of active ingredients for Functional Food and Cosmetic applications: a sustainable approach, and project 5537 DRI, Sérvia 2020/21 from the Portuguese-Serbia Bilateral Cooperation-Development of functional foods, incorporating a chestnut shell extract obtained by subcritical water, supported by national funds by FCT/MCTES and co-supported by Fundo Europeu de Desenvolvimento Regional (FEDER) throughout COMPETE 2020-Programa Operacional Competitividade e Internacionalização (POCI-01-0145-FEDER-029277). Authors also thanks the project SYSTEMIC “an integrated approach to the challenge of sustainable food systems: adaptive and mitigatory strategies to address climate change and malnutrition“. The Knowledge hub on Nutrition and Food Security, has received funding from national research funding parties in Belgium (FWO), France (INRA), Germany (BLE), Italy (MIPAAF), Latvia (IZM), Norway (RCN), Portugal (FCT), and Spain (AEI) in a joint action of JPI HDHL, JPI-OCEANS and FACCE-JPI launched in 2019 under the ERA-NET ERA- HDHL (n◦ 696295). Jaroslava Švarc-Gajić and Tanja Brezo-Borjan are grateful to the Science Fund of the Republic of Serbia (Grant No. 7747845, In situ pollutants removal from waters by sustainable green nanotechnologies—CleanNanoCatalyze), and to the Ministry of education, science and technological development of the Republic of Serbia (Grant No 451-03-68/2020–14/200134).The authors kindly thank Sortegel (Sortes, Portugal) for the samples. Diana Pinto (SFRH/BD/144534/2019) is thankful for her Ph.D. grant financed by FCT/MCTES and POPH-QREN and supported by funds from European Union (EU) and Fundo Social Europeu (FSE) through Programa Operacional Regional Norte. Francisca Rodrigues (CEECIND/01886/2020), Elsa F. Vieira (CEECIND/03988/2018), and Manuela M. Moreira (CEECIND/02702/2017) are thankful for their contracts financed by FCT/MCTES—CEEC Individual 2020 Program Contract. Anna Vallverdú-Queralt thanks the Spanish Ministerio de Ciencia, Innovación y Universidades for the Ramon y Cajal contract (RYC-2016-19355). The authors kindly thank Sortegel (Sortes, Portugal) for the samples. Diana Pinto (SFRH/BD/144534/2019) is thankful for her Ph.D. grant financed by FCT/MCTES and POPHQREN and supported by funds from European Union (EU) and Fundo Social Europeu (FSE) through Programa Operacional Regional Norte. Francisca Rodrigues (CEECIND/01886/2020), Elsa F. Vieira (CEECIND/03988/2018), and Manuela M. Moreira (CEECIND/02702/2017) are thankful for their contracts financed by FCT/MCTES—CEEC Individual 2020 Program Contract. Anna VallverdúQueralt thanks the Spanish Ministerio de Ciencia, Innovación y Universidades for the Ramon y Cajal contract (RYC-2016-19355).