The standard ice cream consists of high calories and fat which could cause metabolic syndrome upon regular consumption. Therefore, this study developed a fat‐free ice cream using fat replacer including inulin (carbohydrate‐based) and whey protein isolate (WPI, protein‐based) at various concentrations (6%, 8%, and 10%) or their combination (1:1). Additionally, freeze‐dried mulberry fruit powder was used as a functional ingredient. The results indicated that both, inulin and WPI, function differently thereby affecting the physicochemical properties of the ice cream. The combination of inulin:WPI at a 4:4 ratio produced high‐quality standard ice cream with a higher sensory score. Further incorporation of freeze‐dried mulberry powder (2%) in a selected fat‐free ice‐cream base showed enhanced sensory, nutraceutical, and textural properties of the ice cream. All fat‐free and fat‐free mulberry ice cream had a trace amount of fat (0.06%), while the calorie was reduced to 88.9 kcal/serving compared with a full‐fat ice cream (195.7 kcal/serving). Hence, fat‐free mulberry ice cream with 74.5% of nonfat milk, 5.0% of skim milk powder, 8% of inulin:WPI (4:4), 9.5% of sugar, 0.5% of emulsifier, and 2% freeze‐dried mulberry powder could serve as the best alternative to the full‐fat ice cream.