In present study, locally available honey bee propolis was characterized for its various physicochemical, antimicrobial properties and nutraceutical behaviour using animal modelling system for food applications. The compositional analysis depicted a higher content of ether extract along with mineral elements (K, Mg, Na, Ca, Fe, Zn, Cu, Mn) in variable amounts. Propolis extract using ethanol and methanol (65%, 80% & 95%) and water quantified for total phenolic contents (TPC) and characterized using HPLC. Antioxidant (DPPH activity, Beta-carotene assay) potential of the extracts was also evaluated. Ethanol extract (65%) propolis exhibited higher total polyphenols (327.30±14.89mg/gGAE) and better antioxidant potential (60.59±4.38%) and indicated maximum zone of inhibition against Escherichia coli (22.19±0.61mm) followed by Bacillus subtilis (26.37±0.31mm) and Staphylococcus aureus (29.18±1.13mm) followed by methanol extract (65%) for the same parameters. Functional propolis based drinks remained acceptable for two months of storage period when subjected to compositional analyses and sensory evaluation. Bio-evaluation based on the composition of diets given to rats: [study-I (normal diet), study-II (high sucrose diet), study-III (high cholesterol diet)] exhibited considerable increase in feed, drink intake and weight gain whereas, decreased hypercholesterolemia and hyperglycaemia. A pronounced decrease (p≤0.05) in serum glucose concentration and increase (p≤0.05) in insulin level was noticed in the ethanol extract drink while keeping liver and kidney functioning tests within normal values. It is deduced from the present exploration that locally available propolis possess significant antimicrobial properties against foodborne pathogens, antioxidant potential and hence may be considered for food applications during food product development to encourage diet based therapies ultimately promoting health management.