Mozzarella is a soft white fermented cheese comprising up to 40% saturated fats and is well known for its stretchability. Consumers’ demand for low‐fat mozzarella cheese (LFMC) has increased with increasing health consciousness. However, the rubbery texture of LFMC tends to lower its acceptability. The study investigates the effect of aloe vera mucilage (AVM) as a fat replacer on the physicochemical, proximate composition, functional, and sensory attributes of LFMC using buffalo milk as substrate. For this purpose, mucilage from AV leaves was extracted and added in concentrations (1%, 2.5%, and 5% v/v) during the formulation of LFMC treatments using the direct acidification technique. A significant reduction in fat contents of LFMC treatments prepared using AVM (p = 0.02) was observed, and among all LFMC treatments, AT2 with 2.5% AVM exhibited significantly improved (p = 0.00) stretchability and meltability. The higher free oil content of 3.8% was observed in LFMC in To (positive control), whereas the lowest (1.28%) was reported in T* (negative control). For hardness, the lowest puncture force of 2.12 and 2.17 N was experienced by the LFMC treatments prepared using 2.5% AVM v/v. The study concluded that adding AVM with a concentration of 2.5% v/v was considered best for its organoleptic properties, improving the textural and functional attributes of LFMC.Practical Application: The demand of consumers for low‐fat mozzarella cheese (LFMC) has increased with increasing health consciousness. The rubbery texture of LFMC tends to lower its acceptability. This research will help to formulate LFMC at the industrial level, creating more diversity and availability of health‐modulating functional foods in markets.