Consumers are increasingly aware of diet related with health problems and those demanding natural products which are expected to be safe and health-promoting. Citrus fruits processing wastes represent a serious problem, but they are also giving sources of materials which may be utilized in the food industry because of their valuable technological and nutritional properties. The aim of this study was to use the defatted powder of Baladi orange (Citrus sinensis) peels in preparing of low caloric sponge cake. Defatted orange peels powder, added at different levels (0; 2.5, 5.0; 7.5 and 10%), to sponge cake mixture. The influence of using such levels of orange peels fiber on sponge cake as follow: with more adding levels of defatted orange peels powder the moisture, ether extract and  total carbohydrate contents were decreased, while crude protein, crude fiber, and minerals (Fe, K, Na, Ca and P) contents  were increased except zinc. Also the energy was decreased. Microbiological examination including total viable count, moulds and yeast were decreased with adding more orange peels powder. The addition levels of defatted orange peels powder increased yellowness of the prepared cakes. Sensory evaluation of manufactured cakes indicated that using of the defatted Baladi orange peels powder at 7.5% level was good enough comparing with control cake. Finally, it could be recommended that the defatted orange peels can be utilized in making sponge cakes until 7.5% substitution levels with wheat flour to solve some of health problems.