Cationic sago starches were prepared using an aqueous alkaline process with different levels of cationic reagent 3-chloro-2-hydroxypropyltrimethylammonium chloride (0.01-0.10 M), sodium hydroxide (0.03-0.86 M) and reaction temperature (30-62 • C). The degree of substitution (DS), reaction efficiency, thermal and pasting properties of cationic sago starches were analysed. Emulsifying and fat binding properties of native sago starch, cationized sago starch and commercial chitosan were compared at two different pH values (4 and 7). Degree of substitution increased with an increase in concentration of cationic reagent or NaOH, or reaction temperature. The reaction efficiency was proportional to the concentration of NaOH and reaction temperature but inversely proportional to the cationic reagent concentration. The highest DS and reaction efficiency achieved was 0.06 and 79%, respectively. The pasting temperature and gelatinization enthalpy of cationic starch (DS 0.06) were lower compared with native sago starch. Cationization increased the peak viscosity and breakdown of the starch paste but decreased the setback. The presence of cationic groups significantly increased emulsion stability, emulsion viscosity and fat binding capacity of sago starch. However, the cationic sago starch was still inferior to chitosan, which showed the highest emulsion stability, emulsion viscosity and fat binding capacity. There was no significant difference between the surface tension values of native and cationic sago starch and chitosan. The influence of pH on emulsifying properties was not significant. The emulsion stability of the cationic sago starch improved due to an increase in viscosity and fat binding capacity but not its surface active property.