There is an increasing interest in applying fruit-processing wastes as functional food ingredients. Hazelnut skin, an interesting and innovative ingredient has recently been evaluated as one of the richest edible sources of polyphenolic compounds. This study aimed to evaluate the use of hazelnut skin as a functional additive in yogurt and to determine the effect of various percentages (2%, 3%, and 4%) of hazelnut skin on the physicochemical, microbiological, rheological, biochemical, and sensorial properties of yogurt. The results showed that the addition of hazelnut skin significantly increased total solids from 16.5% to 17.7% and fat content from 3.45% to 4.60% and decreased titratable acidity by up to 36%. The enrichment with hazelnut skin also improved the viability of yogurt bacteria, water holding capacity (WHC), and antioxidant activity of yogurts. Better results for WHC and antioxidant values were found in yogurt enriched with 4% hazelnut skin. Total phenolic content and Fe2+ chelating activity of yogurts increased with the increasing hazelnut skin ratio. However, yogurts with hazelnut skin had low instrumental texture parameters and apparent viscosity values. On the other hand, acceptable sensorial properties similar to control yogurts increase the consumption potential of yogurts enriched with hazelnut skin.