Breaking and disintegrating of biomass compacts while they are being dried in superheated steam (SS) is a common problem observed during the initial stage of SS drying. The present work investigated the moisture and temperature changes, volume and density variation, crushing resistance, and tensile strength of single cylindrical compacts produced from wet distiller's spent grain (WDG) under SS drying conditions. The wet compacts were dried in SS at 110, 130, and 150°C with SS velocities of 0.9, 1.1, and 1.4 m/s. For a specific temperature and velocity, the compacts were exposed to SS for time periods of 5, 120, 300, and 600 s and the changes in physical properties were analyzed. An increase in a percentage increase in volume by 78–130% and a decrease in density by 51–61% were observed as a result of drying the compact in SS. The results obtained from the study were compared with hot-air dried compacts for 600 s, indicating that SS drying had a substantial role in stimulating the relaxation of stresses stored in the compacts as compared with a convection hot-air drying process.