Abstract: The effect of Xylooligosaccharide (XO) enriched yogurt in addition to basal diet on serum biochemical profile of albino rats assigned to 5 dietary treatments for a period of 21 days were studied. In all groups of rats (n = 5) serum glucose, cholesterol and triglycerides were observed. The weight gain in rats receiving yogurt was higher than those in control group. XO enriched yogurt showed significant improvement in minerals absorption. There was no significant change in serum cholesterol level of rats fed on yogurt with or without XO enrichment but a fair reduction in serum glucose content was noted. XO as a functional ingredient can be incorporated in formulating dairy products with improved health benefits like lowering glucose levels.