The Red Banana Tree (Musa Acuminata) is an ornamental tree with exotic foliage, reddish-purple skin and vibrant, scarlet-colored stems. Though they do not typically produce edible fruit, red banana trees produce an attractive, standout enhancement to any house, yard or landscape.Red bananas are best eaten when ripe, the same way you have a regular banana, after peeling them. They can also be incorporated into breakfast cereals, oatmeal, desserts like fruit salads, smoothies, pancakes, ice creams and pudding. Baked delights like banana bread, cakes, and muffins also taste well.