Increased awareness of health benefits has driven the popularity of Greek-style yogurt (GSY) in recent years. However, increased protein content in the GSY leads to increased graininess, higher viscosity, and chalky mouthfeel. The objective of this study was to investigate the efficiency of micro- and nano-bubbles for improving the physical, rheological, and functional properties of GSY. In this study, a custom-built system was used to incorporate micro- and nano-bubbles (MNB) in GSY. The base for GSY was formulated to a protein content of 10% (wt/wt) using nonfat dry milk, micellar casein concentrates, and water. Control GSY (C-GSY; GSY pumped through the positive displacement pump without attaching the MNB generator) and MNB-treated GSY (MNB-GSY) were compared and evaluated for physical, rheological characteristics such as apparent viscosity, % loss-of-structure (measure of the rate of thixotropic breakdown), syneresis, water-holding capacity (WHC) before and after storage at 5°C for 1, 2, 3, and 4 weeks. Two replicates of C-GSY and MNB-GSY were manufactured and the data were analyzed as repeated measures (SAS Institute Inc.). The density of freshly prepared MNB-GSY and C-GSY was 0.97 and 1.04 g/cm³, respectively. When compared with C-GSY, the syneresis, WHC, and grain counts were significantly different (P < 0.05) after the MNB treatment and subsequent storage time. After the wk 2, 3, and 4, the MNB-GSY samples showed ~58.4%, ~43.1%, and ~50.1% lesser apparent viscosity compared with the corresponding weeks C-GSY samples. The syneresis of the MNB-GSY was significantly lower (P < 0.05), ~19% than C-GSY after storage for 4 wk. After storage for 4 wk, the % loss-of-structure for the C-GSY and MNB-GSY was 32% and 20.1%, respectively. Before storage, the grain counts of C-GSY and MNB-GSY were ~143 and ~37 grain counts/g of yogurt, respectively. After storage for 4 wk, the grain counts of C-GSY and MNB-GSY were ~178 and ~4 grain counts/g of yogurt, respectively. Overall, the incorporation of MNB into GSY showed significant improvements in the rheological and functional properties of GSY.