In Egypt, squid ink is disposed of during squid preparation, which may cause environmental pollution and health problems. Therefore, this study was carried out to make use of the active ingredients found in the squid ink as by-products. The chemical composition, the mineral, total phenols, and flavonoids contents of squid ink were determined. DPPH radical scavenging activity, cytotoxicity, and antitumor activity of squid ink on human tumor cell line (Lung carcinoma cell line) were also tested beside its antimicrobial activity. Two mixtures of black or brown squid ink sauce were prepared. The results indicated that the antioxidant activity was 91.66%. The results of the cell viability and toxicity assay of squid ink indicated that as the concentration of squid ink increased the viability percentages were decreased, while inhibitory activity percentages were increased. The IC50 [the concentration causing the death of 50% of the human tumor cell line (Lung carcinoma cell line A549)] was 22 µg/ml. The results also indicated that the squid ink had antimicrobial activity against Bacillus subtilis, Aspergillus fumigates, Aspergillus niger, Candida albicans, Staphylococcus aureus, Escherichia coli, Klebsiella pneumonia, and Proteus vulgaris with zone inhibitions of 19, 18, 12, 13, 11, 13, 12, and 10 mm, respectively. The overall acceptability scores of the black and brown squid ink sauces were 9.35 and 10, respectively. In conclusion, the formulated squid ink sauces with a strong odor, high acceptability, and different colors as well as anti-oxidant, anti-microbial, and anti-cancer activities can fulfill the desires of many consumers.