This study presents a comprehensive investigation into the physicochemical properties of banana peel waste (BPW) and its potential for thermochemical conversion into bioenergy and value-added chemicals, supported by the results of kinetics, thermodynamics, in-situ volatile products, and biochar analysis. The physicochemical analysis confirms its potential as a source of renewable fuels and valuable chemicals. Subsequently, based on the TGA outcomes, both kinetic and thermodynamic analysis were conducted. The average activation energy (226–257 kJ mol−1), high heating value (19.56 MJ kg−1), Gibbs free energy (118–149 kJ mol−1), and enthalpy change (222–252 kJ mol−1) all underscore the substantial potential of BPW for bioenergy production and its compatibility for co-pyrolysis with other waste materials. Moreover, Py-GC/MS analysis reveals that the pyrolysis of BPW primarily yields volatile products such as acids, aldehydes, alcohols and ketones, offering a potential source of value-added chemicals. Furthermore, the residual solid biochar exhibits an impressive maximum adsorption capacity of 360.18 mg g−1 for Cd(II) in aqueous environments, thereby further highlighting the exceptional quality of BPW-derived biochar as a superior adsorbent for heavy metals. In summary, this study holds significant importance in promoting the efficient utilization of BPW and mitigating the environmental pollution resulting from improper disposal. Display omitted •Kinetic and thermodynamic parameters were calculated to understand BPW pyrolysis behavior.•Acids, aldehydes, alcohols and ketones are the predominant volatile products.•Biochar exhibits excellent adsorption performance towards Cd(II).•BPW emerges as an appealing feedstock for the bioenergy and value-added chemicals production.