Abstract: The butter in the cake was substituted with olestra, a new type of fat replacer, then the effect of olestra on the nutrition composition and sensory acceptability of cake were studied.Olestra cake was evaluated by nutrient and sensory analysis.Analysis of nutrient contents revealed fat reduction in olestra cake compared to control cake was 61.1%, energy was lowered by 466kJ/100g compared with the control cake.Analysis of instrument indicated there was no significant difference between the flavor and odor of two cakes.Analysis of sensory evaluation revealed the mean scores for color, appearance, flavor, cell size, total score of two cakes were similar.The mean score for elasticity of olestra cake (16.81±1.75) was significantly higher than control cake (14.96±2.07) (p<0.05) .Olestra adversely affected overall acceptability.Olestra was a good source of fat replacer.