The present study is about the use of pseudostem of banana tree for value added product. After harvest of the fruit, the pseudostems are cut and abandoned in the fields to become organic waste. The cellulose fiber from banana pseudostem has suitable features to industry but the yield is low because pseudostem has about 90% of water. But banana pseudostem is rich in essential minerals mainly containing high concentrations of potassium, fiber, total carbohydrate and vitamin B6. By considering all these points this study presents utilization of Banana pseudostem juice as an energy drink with the addition of lemon juice and jaggery a sweetening agent. This drink was analyzed for physicochemical properties, antibacterial and anti-fungal activities and effect of Energy/ Nutraceutical drink on Iron deficient Rats was also investigated. The results of physicochemical properties were acceptable and favorable. Effect of the drink on Iron deficient Rats also showed good efficiency with the comparison of Lohasava an Ayurvedic preparation which is using in Anemia. Energy/nutraceutical drink utilizing banana pseudostem juice is economical, beneficial for Nutraceutical and medicinal use.