Proximate composition, mineral content, functional, pasting and antioxidant properties of water chestnut flour (WCF) were compared with refined wheat flour. WCF showed higher phenolic (4.25 gGAE/1000 g), flavonoid (1.92 g QE/1000 g) and mineral content (K, Mg, Zn, Cu) than wheat flour. WCF showed greater retrogradation tendency but lower peak viscosity than wheat flour. Wheat flour -WCF blends and cookies were evaluated for water activity, physical & textural properties. Water activity of cookies decreased significantly (0.415-0.311) with increase in level of WCF in wheat flour. Total phenolic content, flavonoid content and antioxidant activity (DPPH• scavenging capacity, FRAP) of WCF -wheat flour blends as well as their cookies was also determined. Baking led to a greater increase in DPPH• scavenging capacity of WCF cookies (33.8%) than WF cookies (25%). Baking had a similar effect on FRAP value. Wheat flour cookies showed a decrease of 51%, and 62% while WCF cookies showed a decrease of 36%, and 34% in TPC and TFC values respectively. WCF cookies thus showed better retention of antioxidant activities suggesting greater stability of WC phenolics than wheat phenolics. Sensory analysis showed cookies made from water chestnut (100%) had fair acceptability due to their characteristic flavor. Thus, water chestnut flour serves both as a gluten free as well as antioxidant rich flour for production of cookies.