The effects of ball milling on the physicochemical, functional, and emulsification characteristics of Polygonatum sibiricum insoluble dietary fiber (PIDF) were investigated. Through controlling milling time (4, 5, 6, 7, and 8 h), five PIDFs (PIDF-1, PIDF-2, PIDF-3, PIDF-4, and PIDF-5) were obtained. The results showed that ball milling effectively decreased the particle size and increased the zeta-potential of PIDF. Scanning electron microscope results revealed that PIDF-5 has a coarser microstructure. All PIDF samples had similar FTIR and XRD spectra. The functional properties of PIDF were all improved to varying degrees after ball milling. PIDF-3 had the highest water-holding capacity (5.12 g/g), oil-holding capacity (2.83 g/g), water-swelling capacity (3.83 mL/g), total phenol (8.12 mg/g), and total flavonoid (1.91 mg/g). PIDF-4 had the highest ion exchange capacity. Fat and glucose adsorption capacity were enhanced with ball milling time prolongation. PIDF-5 exhibited a contact angle of 88.7° and lower dynamic interfacial tension. Rheological results showed that PIDF-based emulsions had shear thinning and gel-like properties. PE-PIDF-5 emulsion had the smallest particle size and the highest zeta-potential value. PE-PIDF-5 was stable at pH 7 and high temperature. The findings of this study are of great significance to guide the utilization of the by-products of Polygonatum sibiricum.