SummaryReduced fat mayonnaise was prepared by substituting oil with sweet potato powder at concentrations of 2%, 4% and 6%. The changes in physicochemical, oxidative, rheological, microbial and organoleptic properties of functional reduced fat mayonnaise were investigated. The results revealed that sweet potato powder significantly improved the antioxidant activity (2.63–31.6%), rheological attributes, nutritional content and shelf life stability of mayonnaise during the storage time of 21 days. Rheological evaluation illustrated the stabilisation of samples with the addition of sweet potato powder, with a significant reduction in oil droplet size (6.78–2.16 μm) and an increase in firmness (0.941–1.84 N) and adhesiveness (41.21–76.78 × 10−3 Nm). Emulsion stability (93.3–99.2%) was significantly (P < 0.05) enhanced by supplementation with sweet potato powder. The presence of carotenoids in sweet potato improved colour and increased the L* (73.4%) and b* (31.4%) values. Preliminary sensory evaluation demonstrated that taste, texture, mouthfeel and overall acceptability were perceived better in the samples supplemented with sweet potato powder. Our findings suggest that sweet potato powder can be a nutrient enhancer and a considerable alternative to synthetic antioxidants and stabilisers for oil‐in‐water food emulsions.