This study identified 11 lactic acid bacteria (LAB) strains that exhibited tolerance to heavy metal cadmium concentrations above 50 ppm for 48 h. Among these strains, T126-1 and T40-1 displayed the highest tolerance, enduring cadmium concentrations up to 500 ppm while still inhibiting bacterial growth by 50%. Moreover, the fermentation of banana peel using LAB significantly enhanced the clearance rate of cadmium (p< 0.05) compared to nonfermented banana peel. Additionally, the LAB-fermented banana peel exhibited higher 1,1-diphenyl-2-picryl-hydrazyl (DPPH) and reduced power values. Strain T40-1 exhibited a significant improvement in its ability to chelate ferrous ions (p< 0.05). Regarding antibiotic resistance, both the T40-1 and TH3 strains demonstrated high resistance with a third-level inhibition rate against ampicillin and tetracycline. Cell viability tests revealed that incubation with the T40-1 and TH3 strains for a duration of 24 h did not result in any cellular damage. Moreover, these LAB strains effectively mitigated oxidative stress markers, such as reactive oxygen species (ROS), glutathione (GSH), and lactate dehydrogenase (LDH), caused by 2 ppm cadmium on cells. Furthermore, the LAB strains were able to reduce the inflammatory response, as evidenced by a decrease in interleukin-8 (IL-8) levels (p< 0.05). The use of Fourier transform infrared (FT-IR) spectroscopy analysis provided valuable insight into the interaction between metal ions and the organic functional groups present on the cell wall of fermented banana peel. In summary, this study highlights the potential of the LAB strains T40-1 and TH3 in terms of their tolerance to the cadmium, ability to enhance cadmium clearance rates, and their beneficial effects on oxidative stress, inflammation, and cell viability.