Aflatoxins are carcinogenic and toxic metabolites produced by a variety of molds. Aflatoxin M₁ (AFM₁) accumulates in animal livers and it is excreted in milk, which can be consumed by human. The present study was undertaken aiming at examining the dairy milk products for their any contamination of AFM₁ in Alexandria local market, Egypt, as well as conducting trials for elimination of AFM₁ contamination by using ozone gas and gamma radiation. Levels of AFM₁ contamination (0.001 to 0.06 g/l) were ranged from in examined milk and dairy products.  The maximum levels were contamination in raw and pasteurized milk while minimum levels were detected in infant milk. The result indicated that yoghurt processing decreases or even eliminates the presence of AFM₁, which may be attributed to some factors such as low pH, formation of organic acids or other fermented by-products. Treatment of contaminated liquid milk by ozone gas resulted in a decrease or even loss in the contents of AFM₁. However, ozone treatment for 10 minutes was the effective interval for complete elimination of contamination, but resulted in coagulates milk protein and changed the odor. Thus, it can be stated that ozone gas was a non-convenient method for complete detoxification of milk and dairy products. Treatment by gamma radiation (with a dose of 10 kGy) was found to be more suitable as a detoxification procedure than ozone treatment as there were no change in properties of milk upon treatment.