This study aimed to produce and characterise citrate esterified resistant starch (RS) from cassava, and apply it in a dairy beverage. The citrate esterified cassava starch (CECS) was prepared by thermo‐acid catalysed esterification and the product was characterised for RS content, solubility, swelling power, and water absorption. Scanning electron microscopy, viscoamylographic analysis, X‐ray diffraction and Fourier‐transform infrared spectroscopy were used. The CECS was added to a dairy beverage and then the rheological and sensory characteristics were evaluated. The results showed a 60.08% increase in RS content, revealing the occurrence of fissures and overlapping layers in the starch granules. There was a decrease in solubility, swelling power and water absorption, and formation of ester bonds. The rheological characteristics showed a non‐Newtonian pseudoplastic fluid behaviour for the CECS incorporated dairy beverage. The addition of 1.5% CECS to the dairy beverage influenced the colour, taste and consistency, while the addition of 0.5% CECS showed a greater purchase intention, providing an opportunity for development of functional dairy products. In conclusion, this work shows that the developed resistant starch is a promising functional ingredient, with promising applications in the food industry.