Tamarind Kernel Powder (TKP) is derived from the seeds of Tamarindus indica Linn., a common tree of India and South East Asia with high economic importance. TKP is used in cotton sizing, as a wet‐end additive in the paper industry as well as a thickening, stabilizing and gelling agent in the food industry. Cyanoethylation of TKP was carried out with acrylonitrile (AN) in presence of sodium hydroxide under different reaction conditions. Variables studied were concentration of sodium hydroxide and AN, gum‐liquor ratio as well as reaction temperature and time. The degree of substitution (DS), reaction efficiency (RE) and total extent of etherification were determined. The optimum conditions for preparing cyanoethyl‐TKP (DS 0.49) comprised 0.088 mol (1.3 equiv./OH group) of sodium hydroxide, and 0.050 mol (0.7 equiv./OH group) of AN at 30°C for 45 min using 0.026 mol TKP (0.07 mol OH groups) in 100 mL water. Rheological studies of cyanoethyl‐TKP solution exhibited non‐Newtonian pseudoplastic behavior, relatively high viscosity, cold‐water solubility, solution stability and clarity as compared with unmodified TKP.