Omega-3 fatty acid imparted good evidence of health benefits. Flaxseed oil, being the richest vegetarian source of alpha linolenic acid (omega-3 fatty acid), was incorporated in cookies by replacing shortening at level of 5 %, 10 %, 20 %, 30 %, 40 % and 50 %. Effect of shortening replacement with flaxseed oil on physical, textural and sensory attributes were investigated. Spread ratio and breaking strength of cookies increased as flaxseed oil level increased. Sensory score was not significantly affected up to 30 % shortening replacement with flaxseed oil as compared with the control cookies. Above 30 % flaxseed oil, sensory score was adversely affected. Fatty acid profile confirmed the enhancement of omega-3 fatty acid from 0 (control) to 14.14 % (30 % flaxseed oil cookies). The poly-unsaturated to saturated fatty acid ratio (P/S) increased from 0.088 (control) to 0.57 while ω -6 to ω -3 fatty acid ratio of flaxseed oil cookies decreased from 4.51 (control) to 0.65 in the optimized cookies. The data on storage characteristics of the control and 30 % flaxseed oil cookies showed that there was significant change in the moisture content, Peroxide value (PV) and overall acceptability (OAA) up to 28 days of storage at 45°C packed in polyethylene bags. Flaxseed oil cookies were acceptable up to 21 days of storage and afterwards noticeable off flavour was perceived.