Labneh was made using buffalo's milk of 4% milk fat (control) treatment. Four treatments were made with frequent homogenizer technique for homogenization of palm oil with labneh mixture containing 23% total solids using skim milk powder. The chemical, microbiological and organoleptic properties were carried out. Control and treatment T₁ (4% milk fat and 4% palm oil) were of the lowest fermentation time during preparation of yoghurt used in making labneh. In the resultant fresh and stored labneh, the control sample were of the highest acidity, which gradually decreased in T₄ (water with 8% palm oil) Also, NPN, TVFA and acetaldehyde contents were of the maximum in the control, Treatments T₃ ( liquid buffalo's skim milk with 8% palm oil) and T₄ (water with 8% palm oil) had the lowest values in this respect. The optimal samples microbiologically were noticed in control one, while the viable counts gradually decreased especially in fresh and stored T₃ and T₄ labneh in order. Organoleptically, control and T₁ were the superior as accepted of their flavour and  body & texture. On the contrary T­₄ had the minimum scoring points in this respect.