In recent years, there increment demand for healthier food options that can replace high-fat ingredients in bakery products without compromising their taste and texture. This research was focused on a formulation study of the blend of nano polysaccharides derived from aloe vera and guar gum at various concentrations. This study selected the blend concentration of 1 % aloe vera mucilage (AM) and 1 % guar gum (GG) due to its optimal gelling properties. Different magnetic stirring time durations were employed to formulate AGB (aloe vera guar gum blend). The particle size of AGB revealed the lowest nanoparticle size (761.03 ± 62 nm) with a stirring time of 4 h. The FTIR analysis found the presence of monomer sugars in AGB nano polysaccharide powder such as mannose, arabinose, and glucose. The thermogram results displayed an endothermic peak for all samples with a glass transition temperature (Tg) between 16 and 50 °C. The SEM image of the AGB indicated uniform spherical particles. The AGB powder exhibited good functional properties. The antimicrobial activity of AGB powder against Staphylococcus aureus, Escherichia coli, and Candida albicans was 22.32 ± 0.02, 21.56 ± 0.02, and 19.33 ± 0.33 mm, respectively. Furthermore, the effects of different levels of vegetable fat replacement with AGB powder on cake sensory properties, thermal stability, and texture characteristics were also examined. Notably, the cake containing a 50 % substitution of vegetable fat with AGB (C50) supplied desirable physicochemical, textural, and sensory properties. These results can provide advantages for the development of fat replacers in bakery products.