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The innovation “Natural Collagen-Rich Fish Bone Crackers” was developed as an ecok industry produces large amounts of by-products such as bones, skin, and scales, which are often discarded despite containing Type I collagen, calcium, and other essential nutrients. This innovation processes these materials through mild acid treatment, controlled boiling, and drying techniques to extract natural collagen, which is then converted into fine, high-quality powder. The collagen and calcium powders are incorporated into a reformulated cracker mixture to produce a crispier, more aromatic, longer-lasting, and more nutritious product compared to conventional crackers. By integrating food science, processing technology, and zero-waste principles, this product adds commercial value to organic waste. Tests show that the crackers are free from chemicals, MSG, and artificial colouring, while offering a lighter texture, higher crispiness, and natural umami flavour. Economically, production costs are low and market potential is wide, covering health foods, premium snacks, and SME-based products. In conclusion, this collagen-rich fish bone cracker innovation presents a healthier, sustainable, and high-value food model that supports environmental conservation and strengthens local economic development.