Bakery products are a food appreciated by consumers all over the world. There is a great opportunity to incorporate more bioactive compounds to enhance its quality. The objective of this study was to utilize the advantage of CTE in the production of sponge cake. The five different levels of CTE (0, 5, 10, 15 and 20%, w/w) was incorporated into sponge cake. The sponge cakes were evaluated for physicochemical (color, volume, water activity, total phenolic content, and antioxidant properties) and texture characteristics as well as consumer acceptance. Addition of CTE into the sponge cakes increased the polyphenol content and antioxidant activity concomitant with reduced lipid peroxidation. Increasing hardness, adhesiveness, gumminess, and chewiness and decreasing cohesiveness, springiness and resilience of cakes were seen when increasing percentage of CTE in the cake. A significant decrease was observed in the lightness, redness and yellowness in the cake containing CTE. No differences were found in overall acceptability between the control and the cake containing CTE. The findings suggest that CTE could be a potential source for development of sponge cakes with more effective antioxidant properties.