In recent years, foods are not anticipated to only satisfy hunger needs and to deliver essential nutrients to people but also to avoid nutrition-related diseases and enhance physical and mental comfort of the people. Bakery products provide best structure by which functionality can be provided to the customers in a suitable food. Apple pomace is the byproduct of apple fruit industry. Apple pomace is also a rich source of phytochemicals. In this study, apple pomace was dried at 60oC to convert into powder form. Value addition of muffins were done with two varieties of apple pomace powder (Kala Kullu, Golden) using 0%, 5%, 10% and 15% concentration. These muffins were characterized on the basis of chemical (proximate analysis, total phenolic compounds), physical (texture, color) and sensory properties. Addition of apple pomace powder (APP) of both varieties significantly increases the ash, crude fiber and phenolic content. Highest values were observed in the treatment containing 15% of apple pomace powder i.e. 3.01 and 2.76 mg/g GAE for TA3 and TB3 respectively. Hardness was also increased with the increasing level of apple pomace powder. From the sensory evaluation, the muffins containing 10% APP from Kala Kullu performed better than other variety on hedonic scale. Conclusively, apple pomace can effectively be utilized to develop functional muffins with added health benefits without compromising sensory or physicochemical attributes.