The aim of this study was to determine the effect of fat level and composition on chemical, textural, microbial and sensory properties of set yoghurt analogue. The best fat level for production of yoghurt analogue was found to be 2% (w/v). Studies on the effect of fat composition (canola‐to‐sesame oil ratios of 2.0/0, 1.3/0.7, 0.7/1.3, 2.0/0) indicated the superior performance of pure sesame oil. Increasing the canola‐to‐sesame oil ratio generally resulted in an inferior product. Replacement of milk fat by vegetable oils yielded yoghurts with a lower saturated fatty acid content and less firmness.