Lyophilized pomegranate peel nanoparticles extract (LPP-NPsE) is rich in bioactive compounds and could be applied as a natural antioxidant. This study evaluated the effect of using LPP-NPsE as an antioxidant on the oxidative stability of sunflower oil and reducing of acrylamide induction in potato chips during deep frying. LPP-NPsE was incorporated into sunflower oil (1000 mg/kg) while butylated hydroxytoluene (BHT, 200 mg/kg) and tocopherols (1000 mg/kg) were used as a positive control. Peroxide value (PV), total polar compounds (TPCs), free fatty acids (FFAs), and conjugated dienes and trienes were determined during frying to monitor oil stability. LPP-NPsE was effective and had the lowest PV, FFA, and TPC during frying. The acrylamide content was determined using HPLC coupled with a photo diode array detector. The initial value of acrylamide was low (192 mg/kg), while the highest acrylamide content was detected in control deep-fried potato chips (1674 mg/kg) after 20 frying cycles. The reduction (54%) in acrylamide content in potato chips was achieved after the addition of LPP-NPsE. LPP-NPsE could be favorably used as an antioxidant for acrylamide reduction in sunflower oil during deep frying.