Short-dough cookies are one of the most popular cereal-based products in the world, but usually they are considered as foods with a low nutritional value. Therefore, the aim of this study was to investigate the possibility of replacing part of the wheat flour (WF) with hulless barley flour (HLBF), in order to improve the functional properties and nutritional value of the cookies. Cookies were prepared from composite flours in the ratios HLBF:WF 0:100, 25:75, 50:50, 75:25, and 100:0. The results show that as the HLBF content in the composite flour increases, the viscosity of the corresponding HLBF:WF slurries also increases, due to the high dietary fiber content (especially the high β-glucan content), which is significantly higher when HLBF is included in the formulation. The addition of HLBF decreases the spread factor of the cookies, and increases their softness compared to the control cookies (100% WF), but these changes are not statistically significant up to 50% HLBF addition. The color of the HLBF:WF cookies is not significantly affected. A significant increase in total phenolic content (TPC) and increased antioxidant capacity (AOC) are observed in the HLBF:WF cookies. In addition, sensory evaluation confirms that WF can be replaced by up to 50% with HLBF without significant deterioration of the organoleptic properties of the cookies. It can be concluded that hulless barley serves as a promising raw material if the nutritional and functional properties of cereal-based products are to be improved.