There is increasing concern for reduction of the ecological impacts of industrial waste caused by fruits and vegetables. To reduce costs of onion waste disposal while obtaining value-added products, onion skin can be used to extract quercetin, a natural flavonoid with antioxidant, anti-inflammatory and anti-cancer effects. The aim was to optimize quercetin extraction from brown onion ( L.) skin through investigation of the effects of different parameters on quercetin yield. Operational parameters for conventional maceration extraction and for ultrasound-assisted extraction were compared: solvent type, mass-to-liquid ratio, extraction time and temperature. Antioxidant capacity was determined using DPPH· radical scavenging assays and quercetin yield using HPLC/DAD. Anti-α-amylase activity of onion skin extracts was investigated using α-amylase inhibition assays. Optimal extraction conditions of quercetin from onion skin were obtained with maceration extraction, 50% ethanol, 1:100 mass-to-liquid ratio, 25 °C, for 15 min. Under these conditions, the antioxidant capacity (expressed as quercetin equivalents) was 18.7 mg/g and the mass fraction of quercetin was 7.96 mg/g. The onion skin extracts showed a dose-dependent relationship between dry extract concentration and α-amylase inhibition, which confirms that this onion skin extract can be considered as an anti-diabetes agent.