Orange is used in the juice industry, yielding important quantities of by products. Orange peel is analyzed for chemical composition and water holding capacity. Data show that, it has high amount of crude fiber, phenolic contents and antioxidant capacity, also it has high level of water holding capacity. Biscuits are prepared from blendes which contain a different proportion (5, 10, 15, 20 and 25)% of orange peel flour are also evaluate for physical and sensory characteristics, chemical composition and rheological properties for this blendes. The sensory evaluation does not show any significant difference between control and that adds with 10% of orange peel flour. Physical parameters, namely, diameter, thickness and spread ratio were tested. The diameter and thickness of orange peel substituted biscuits were decreased, whereas spread ratio of biscuits increase with increasing levels of it. The data reveals that incorporation of orange peel powder in biscuits increase crude fiber, ash, phenolic contents and antioxidant capacity, it decreases the carbohydrate content. Rheological properties of the blended flour show increase in water absorption and stability. Addition of 40ppm xylanase enzyme reduce the hardness value of the sample in general, it also decrease the spread ratio as compared to control samples with no enzyme added. Sensory evaluation results show good overall acceptability scores for the biscuits contain 10% orange peel with and without xylanase.