Abstract: A method and system for deriving animal feed from waste food is provided. The method and system involves dehydrating the waste food. The dehydrated waste food is grinded and mixed with one or more nutrients based on requirements of an animal. Thereafter, a mixture of the waste food and the one or more nutrients is extruded to obtain a plurality of grain pellets with a predetermined consistency. The plurality of grain pellets obtained after extrusion are cut to obtain a required shape and size for a grain pellet. Thereafter, the plurality of grain pellets are conditioned by adding one or more of fat, minerals and vitamins to the plurality of grain pellets. The plurality of pellets thus obtained are packaged and supplied as animal feed.