Fruit and vegetable waste valorisation has opened opportunities for the utilisation of food waste for extraction and development of valuable functional foods. Therefore, the study was designed to develop a functional Kulfi fortified with encapsulated betalains extracted from red beetroot (Beta vulgaris L.) pomace. Moreover, fortified functional Kulfi samples were studied for physico-chemical, antioxidant, microbiological and sensory analyses. Fortified functional Kulfi reported the higher antioxidant activity (64.88% and 75.27%) with reduced melting rate (1.84 mL min −1 and 2.08 mL min −1 ) and microbial profile (3.77 log CFU g −1 and 3.14 log CFU g −1 ) compared with control. Sensory analysis showed a no significant (P > 0.05) impact on the overall acceptability of functional Kulfi (7.25) compared with the commercial Kulfi (7.20), which was further confirmed by a bi-plot of principal component analysis. Overall, the encapsulated betalains improved the quality characteristics of functional Kulfi and could be used for the development of frozen dairy products.