Low-fat cheese is the demand of this era due to overconsumption and sedentary life style and increase in diseases such as hypertension, obesity, and cardiovascular diseases. Despite its fat content, cheese is a good source of valuable protein and peptides and a good source for lactose intolerant people. Removal of fat causes various quality problems so fat must be replaced with a fat-replacing agent and inulin is a good choice. Inulin is a food ingredient that belongs a class of carbohydrates known as fructans with degree of polymerization range from 2 to 70. Chemical structure is linear fructan with (2–1)-linked β-d-fructosyl units. Fructan with degree of polymerization <10 are called fructo-oligosaccharides. They have functional and health-promoting properties as they reduce caloric value, add dietary fiber, and endorse prebiotic effects. Inulin is frequently used in industrially processed dairy as a bulking agent for fat replacement, textural modifications, and organoleptic improvements. Hence, inulin can be used in manufacturing different kind of cheeses to have reduced or low fat, texturized or symbiotic product. The present study was designed to evaluate the effect of different levels of inulin in low-fat Cheddar cheese to improve its quality. Different levels of inulin have significant effects on the physico-chemical (moisture, fat, protein, ash) characters. Meltability and flowability showed inverse relationship with levels of inulin. Meltability and flowability decreased with increasing inulin and increasing hardness. Maximum meltability and flowability was noted in I₁ as 54.00 mm and 18.70% respectively. Yield calculation showed nonsignificant effect within levels but significant effect as compared with control. The fat substituting property is based on its ability to stabilize the structure of aqueous phase, which improves creaminess. The addition of inulin as fat replacement improved the sensory characteristics of low fat cheese samples when added up to the level of 0.5% inulin. Increase in inulin levels in cheese samples decreases the scores awarded for various parameters.