Background and Objective: Watermelon is a good source of minerals, vitamins and dietary fibers. It has been considered a health benefits effect due to the high amount of antioxidants and phytonutrients such as phenolics, flavonoids, phytosterols and other medicinal compounds which decrease the risk of cardiovascular, diabetes and cancer. This research was carried out to study the effect of wheat flour (WF) supplemented with different levels of watermelon rinds flour (WRF) on the chemical and organoleptic properties of balady bread. Furthermore, the effect of prepared bread on reducing blood lipids of hyperlipidemic rats. Materials and Methods: Wheat flour (WF) has been supplemented with different levels (5, 10, 15 and 20%) of watermelon rinds flour (WRF). The chemical and organoleptic properties of balady bread and the anti-hyperlipidemic effect of prepared bread on hyperlipidemic rats were evaluated. Results: The results indicated that incorporation of WRF in balady bread wheat flour increased the fibre, ash and minerals content of prepared bread. While carbohydrates content and energy value were decreased by increasing the WRF substitution levels. Organoleptic evaluation tests showed that up to 15% of WF could be replaced with WRF in balady bread and still more acceptable bread compared with control bread samples. In addition, rats fed on a hyperlipidemic diet containing balady bread fortified with WRF showed a significant decrease (p<0.05) in the triglyceride (TG), total cholesterol (TC), High-Density Lipoprotein Cholesterol (HDL-C), Low-Density Lipoprotein Cholesterol (LDL-C) and Very-Low-Density Lipoprotein Cholesterol (V-LDL) level by increasing the amounts of simultaneous supplementation with WRF 5-15% in the formulated balady bread compared to control samples. Conclusion: The research recommended that the 15% replacement of WRF gave good quality properties and lead to reducing body weight and serum lipid profile of hyperlipidemic rats.