Making functional labneh from buffalos milk with added guava (Psidium guajava) leaves extract was examined. Methanol was used for extraction of the phenolic compounds. The total phenols of 890, 879 and 883 ug/g powder were, respectively, used at an extraction ratio of 1:12. Different concentrations of water extract of guava leaves were added to milk before adding the starter resulted in significant changes in pH, titratable acidity during cold storage. Reducing activity of all samples significantly (P>0.05) decreased up to the end of storage period. Concentration of phenolic compounds till 300ug/100ml milk used in making labneh increased, followed by a slight decrease during storage. Viable cell counts increased in labneh with added guava leaves extract,  phenolic component 75ug /100 ml from960 CFU\ml after one day to 9 .77 on the fifth day. A decline in CFU\ml throughout storage was detected. Sensory evaluation data indicate no significant differences (p >005) between the control and treated samples. Labneh with added water extract of guava leaves powder as natural antioxidants source could be proposed for making it as natural antioxidants source.