Believe it or not, boiled peanut shells are a Southern delicacy. In parts of the U.S., people boil whole, raw peanuts in salty brine until the shells soften to the consistency of a damp sponge. Then they pop the whole thing in their mouth, suck out the salty juice, and chew the shell like the world’s most rustic gum. It’s a tradition, albeit one that makes your dentist weep.
And then there’s peanut shell flour. Yes, some companies grind up roasted peanut shells into a powder and sell it as a gluten-free, high-fiber additive for breads and burgers. It’s basically “edible sawdust” for the brave. The FDA says it’s safe—though, let’s be honest, they also say hot dogs are safe, so take that with a grain of (shell-free) salt.
Peanuts Eating With Shell at Skye Clarey blog