Defatted rice bran (DRB) and hydrolyzed defatted rice bran (DRBT) were prepared from rice bran meal (RBM). Proximate composition, oil and water binding capacities, emulsifying and foaming characteristics were determined. Effect of different substitution of DRB and DRBT as Fat replacers in biscuit on the farenograph parameters and sensory characteristics were also evaluated. The total protein, ash and crude fiber were significantly (P≤0.05) increased in each of DRB and DRBT compared to RBM. Defatted rice bran protein hydrolyzed improved the DRBT water, oil absorption index being 1.7. Used each of DRB or DRBT gave high emulsifying activity and stability indices in casein model system. The same trend was observed with foam activity and stability indices in egg albumin system. farenogram parameters significant (P≤0.05) affected by using DRB and DRBT. The prepared biscuits samples had high sensory scores with 10 to 50 % DRB and DRBT attributes and recorded non-significant (P≤0.05) differences compared to control sample.