d-Allulose, a C-3 epimer of d-fructose, is a rare sugar with ∼70% of the sweetness of sucrose but a caloric content of only 0.4kcal/g. Due to its low-calorie nature, d-allulose has garnered increasing interest in the food industry. This study was the first attempt to explore the effect of d-allulose as a sucrose replacer on the properties of sponge cake, a widely consumed high-sugar product. Substituting sucrose with d-allulose generated negligible impact on the batter system, while pronounced differences in physicochemical properties of cakes were detected, including specific volume, texture, microstructure, color, and antioxidant activity. In addition, sponge cake containing d-allulose displayed a distinctive aroma volatile profile, with more furans and pyrazines generation. Furthermore, correlations of physicochemical properties across all formulations were depicted, and the potential mechanism behind the property alterations modulated by d-allulose was revealed from the perspectives of starch gelatinization and browning reactions. Overall, this study provides insights into the application potential of d-allulose as a sucrose substitute in bakery product. PRACTICAL APPLICATION: This study elucidates the effect of d-allulose as a low-calorie sugar substitute on sponge cakes. This finding is valuable for the food industry, providing insights into a healthier alternative to traditional sugar in baked goods.