An experimental study was designed to formulate ready to eat cookies by incorporating banana and banana peel flour which is normally unused in Bangladesh but contains excellent amount of nutrients especially dietary fiber, essential vitamins and minerals. Cookies were prepared by replacing 5 % (sample-1), 10 % (sample-2) and 15% (sample-3) of wheat flour with banana and banana peel flour. The proximate analysis and sensory parameters of those cookies were compared with control cookies where no banana and banana peel flour were added and designated as normal cookies (0% substitution). Functional properties were also evaluated and a significant difference found (P<0.05) in WHC, OHC, swelling capacity, emulsion activity, emulsion stability and flour dispersibility in banana peel flour when compared to wheat flour. On proximate analysis of cookies, significant variation (P<0.05) was also observed in protein, ash, fiber and carbohydrate content of banana and banana peel flour cookies in a comparison to normal cookies. The increasing the substitution of banana and banana peel flour in cookies increased the ash and crude fiber content remarkably. About 15% substitution of banana and banana peel flour in cookies increased 93.25% crude ash (mineral) and 197.56% crude fiber than normal cookies. Energy values of the cookies were also evaluated and ranged between 480 Kcal and 513 Kcal per 100 g, with sample-3 cookies having the lowest value. In conclusion, the addition of both banana and banana peel flour in cookies by replacing 10% wheat flour were more acceptable with all quality characteristics.