To improve the rough texture and hypoglycemic ability of sea buckthorn insoluble dietary fiber (IDF), a novel combined modification method was developed in this study. The IDF was treated with ball milling and cellulase treatment to obtain co-modified insoluble dietary fiber (CIDF). The physicochemical and functional properties of IDF, milled insoluble dietary fiber (MIDF), and CIDF were studied. After treatments, MIDF had smaller particle sizes and a looser structure, and CIDF exhibited a wrinkled surface and sparse porous structure according to scanning electron microscopy (SEM) and X-ray diffraction. Compared to IDF, MIDF and CIDF showed improved water-holding, oil-binding, and swelling capacities, improved by 16.13, 14.29, and 15.38%, and 38.5, 22.2, and 25.0%, for MIDF and CIDF, respectively. The cation exchange ability of modified samples showed improvement as well. Treatments also changed the fluidity of MIDF and CIDF. Due to the smaller particles and increased stacking, the bulk density (BD) and angle of repose of MIDF improved by 33.3% and 4.1° compared to IDF, whereas CIDF had a looser structure and thus decreased by 7.1% and 13.3° with increased fluidity. Moreover, the modification also enhanced the effects of CIDF on glucose adsorption, glucose diffusion inhibition, starch digestion inhibition, starch pasting interference, and α-amylase activity inhibition. In summary, IDF modified by ball milling combined with cellulose treatment could be developed as a functional ingredient for regulating glucose content.