Biscuits prepared with different levels of hydrogenated fat (vanaspati) and peanut (Arachis hypogaea L.) butter (PB) (100:00, 75:25, 50;50, 25;75, 00:100) were evaluated for their fatty acid composition and textural property. Saturated fatty acids like myristic, palmitic, stearic acids were higher in control biscuits (100% vanaspati), which decreased with increasing proportion of PB in the experimental biscuits. Oleic acid and linoleic acid were lowest in control biscuits and it gradually increased upon incorporation of PB. The hardness of biscuits also increased with increasing proportion of PB. Overall sensory quality of experimental biscuits improved when 50% vanaspati replaced by PB in the standard biscuits recipe. Biscuits prepared with 50% supplementation of PB had better fatty acid composition with balanced oil quality and also had a greater acceptability by sensory evaluation panel.