This research was carried out to study the effect of partial replacement of wheat flour (72% extraction) with different levels of 5%, 10% and 15% of pomegranate peels powder (PPP) on the chemical, physical and sensory characteristics of cupcake. Results indicated that pomegranate peel powder addition caused a significant increase in fiber, ash, minerals, total phenolic, and total flavonoid contents of produced cupcakes, as well as enhancing antioxidant activity. While, carbohydrates content and energy value were decreased by increasing the PPP substitution levels. However, weight, volume and specific volume of produced cupcake decreased with an increasing substitution level of PPP. Moreover, crust and crumb Hunter L*, a* and b* values of produced cupcakes decreased with increasing the substitution amount from 5 to 15% PPP. All fortified cupcakes with PPP had a excellent sensory characteristic. Finally, PPP could be used up to 15% in cake recipes as a wheat flour substitute to produce a functional cake with high nutritional value.