In recent years, since excess adiposity is thought to be responsible for the development of chronic diseases, many ingredients have been developed for the specific purpose of fat replacement in functional dairy foods. Carob bean gum (CBG) is widely used in food systems to modify quality attributes and shelf-life as thickening and gelling agents. Objective of this study was to develop reduced fat (12%) and low fat (6%) yoghurt using CBG as a carbohydrate based fat replacer. The results revealed that the addition of CBG increased the textural and sensory attributes of reduced fat yoghurts. In this present study, the textural properties such as firmness, and stickiness of yoghurt samples were significantly higher in the low fat yoghurt (6%, T5) with CBG, and yellowness index was increased in low fat (6%, T3 and T5) yoghurts. The addition of CBG to reduced fat and low fat yoghurts (T4, T5) improved the sensory properties and acceptance index.