Systematic extraction and purification of β-glucan was attempted from molasses yeast (Saccharomyces cerevisiae) waste available from ethanol industry. The aim was to create value for the waste material by making it suitable for topical use in beauty industry. The process involved cell autolysis fractioning, solvent extraction and drying. The optimal extraction method of β-glucan gave an yield of 12.0 % (w/w) from molasses yeast waste. The β-glucan obtained was characterized using nuclear magnetic resonance spectroscopy and high-performance liquid chromatography. The effect of β-glucan on TNF-α and IL-6 levels was studied in vitro in lipopolysaccharide-activated RAW 264.7 cell line. The results indicated that β-glucan suppressed TNF-α and IL-6 production at 6 h and 24 h compared to the LPS control. Clinical evaluation of moisturizing potential of β-glucan was conducted on 22 volunteers over a period of 14 days. The results demonstrated an increase in hydration rate of 9%. The 48 h occlusive single patch test indicated that the β-glucan sample was non-irritating with mean cumulative irritation index value of 0. This study demonstrated that it is possible to create value from molasses yeast waste material, which could be industrially exploited to benefit the personal care industry in a sustainable economy.