Effective postharvest handling and value addition of tomatoes are crucial for enhancing farmers’ profitability. Tomatoes, as a highly perishable crop, often experience significant losses during postharvest stages due to insufficient storage and handling practices. Postharvest losses of horticultural crops, ranging from 20% to 40%, create a substantial gap in market potential. This study explores various postharvest handling techniques and value addition strategies to reduce losses and enhance economic outcomes for tomato growers. The review highlights key postharvest practices, including optimal storage conditions, efficient sorting and grading and advanced preservation methods, which collectively extend the shelf life of tomatoes and reduce spoilage. Additionally, the study underscores the potential of value added products, such as tomato sauces, powders and canned goods, to enhance the market value of tomatoes. Transforming raw tomatoes into high demand products enable farmers to access new revenue streams and decrease reliance on fresh market sales. The findings indicate that adopting improved postharvest handling methods and leveraging value addition opportunities can significantly boost farmers’ profitability. These practices not only reduce waste but also provide economic benefits through higher value products and improved market positioning. Overall, the study highlights the importance of innovative postharvest management and product development approaches for achieving sustainable economic growth in the tomato farming sector.