This research aims to investigate the effect of using orange by-products as sustainable functional ingredient with compared by its juice on the physicochemical, rheological, melting rates, total phenolic compounds, antioxidant scavenging activity, sensory characteristics and cost of production of low fat ice cream. Control 6% fat was made for comparison the impact of several additives on low fat quality characteristics. All other low fat ice cream treatments were made with 1% fat; the first was made without any additives as a control low fat (CLF). Orange juice (OJ) was used at ratios 8, 12 and 16 % to act as T1, T2 and T3 respectively. Orange peel (OP) was used at ratios 2, 4 and 6% to act as T4, T5 and T6 respectively. While, whole orange pulp (WOP) was used at ratios 3, 6 and 9 % to act as T7, T8 and T9 respectively. Full fat ice cream had higher rheological characteristics, pH value and higher sensory properties with slower melting rates and had the highest production cost than other low fat ice cream treatments. Using OJ increased the flavour scores, total phenolic compounds and antioxidant scavenging activity than CLF with significant higher rheological characteristics than CLF. While using OP or WOP caused an increase for the rheological characteristics, melting resistance and higher sensory properties with lower production cost. It can be concluded that using 4% OP in low fat ice cream improved rheological characteristics, body & texture scores and total acceptability scores. While using 6% WOP improved the quality characteristics of the resultant low fat ice cream with total acceptability scores close as possible to full fat counterpart with reduction of the production cost by 28.02% as compared to full fat ice cream.