Melon Manis Terengganu (MMT) is comprised of 28 - 30% peel which is a by-product of food processing. The peel is a source of dietary fibre which has a potential role in glycaemic response. The present work thus aimed to develop formulated MMT peel powder, and examine its organoleptic properties, in vitro hypoglycaemic effect, and starch digestibility. The MMT peel powder was formulated as Formulations 0, 1, 2, and 3 with different sweetener ratios (0, 40, 50, and 60%), and subjected to sensory evaluations. Tukey’s post-hoc test was used to evaluate significant differences between mean values following one-way analysis of variance (ANOVA). Meanwhile, the Friedman test followed by Wilcoxon signed ranks test were performed for sensory evaluation analysis. Results demonstrated that the most acceptable formulation for consumption assessed using sensory evaluation was Formulation 3; its total, digestible, and resistant starch content were the lowest among all the formulations. The same went to the hydrolysis index and estimated glycaemic index. However, Formulation 3 was the least effective in reducing glycaemic response due to the weakest in vitro hypoglycaemic activity. On the other hand, the mentioned attributes previously were observed in Formulation 0 in an opposite manner. In summary, these findings suggested that formulated MMT peel powder had the potential to be used in blood glucose control.