Lal peda is a traditional dairy-based sweet, popular in the Indian subcontinent, but it has a poor shelf life. The lal peda samples were packed in polyethylene bags filled with 3 different gaseous compositions (Air, 70 % N2: 30 % CO2 and 98 % N2) and stored at 10°C. The shelf life was evaluated on the basis of changes in the microbial status of the product such as total plate count, yeast and molds and coliform counts and also the physico-chemical changes such as hydroxy methyl furfural (HMF), thiobarbituric acid (TBA) and free fatty acid (FFA). The microbial spoilage and the indices of chemical changes increased in all the samples with the progression of storage period. The samples packed with air showed significantly higher chemical deterioration and microbial spoilage as compared to the other two combinations. The results showed that samples packed with 70 % N2: 30 % CO2 combination had better shelf stability as compared to the samples packed under air and 98 % N2.