This research study aims to potential utilization of Citrus maxima peel waste and optimize the hydrothermal liquefaction process for the production of bio-oil (BO) and bio-char (BC). The effect of several HTL processing variables on BO yield (%) and BC yield (%), including temperature, retention period, and slurry concentration, has been examined using central composite design (CCD) (a three-level three-factor design). The optimized values of HTL process variables were found to be 240 °C (temperature), 52 min (retention time), and 7% (slurry concentration) and the corresponding responses were 5.794% (BO yield) and 29.450% (BC yield). The values obtained from the RSM-CCD model as the predicted values agreed with the experimental values (5.93% and 30.14%). Further the BO and BC obtained under optimized conditions and CPP were analyzed to identify the variations by 1H-NMR, GC–MS, FT-IR, and CHNO-S. © 2023, The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.