Pomegranate (Punica granatum L.) peels are rich in nutrients especially phenolic contents. Utilization of pomegranate peel flour as residue to produce sponge cake in present study was targeted. This study reports on the effect of composite flour consisting of wheat and pomegranate peel flour (PPF) on the physicochemical, sensorial and microbial characteristics. Wheat flour was substituted with PPF at 0, 5, 10, 15 and 20% ratios. The results showed that the sponge cakes 4 containing up to (20% PPF) had the lowest volume (33.046) and the highest weight (20.20) among all of the used samples, while Sponge cake 1 (5% PPF) had the lowest weight as (12.30) and the highest volume as (52.704) The control sample recorded the highest scores for all sensory attributes compared with other samples. The chemical analysis revealed that significantly increases were found in ash and crude fibers content compared with control sponge cake. Protein and fat contents significantly decreased as a resulting of PPF increases. Pomegranate peels has been previously referred as good source of Ca, K and Fe. Sponge cake 4 (20% PPF) had the highest total phenolic compounds as (0.669 mg GAE/100 g). Sponge cake 4 with 20% PPF gave the highest protection against some microbial contamination. TBC (1.8 and 2.7 log10 CFU), respectively, after 4 and 6 days comparing with control. On the other hand, sponge cake 4 (20% PPF) was the lowest in coliform and Yeast & Molds counts (3.9 and 2.9 log10 CFU), respectively after 6 days of storage. In summary, our results concluded that pomegranate peel flour can be used in cake preparation to improve fibers, minerals and phenolic contents that recommended gaining nutritional and healthy.