Insoluble dietary fiber (IDF) settles in set yogurt due to its water insolubility. Making IDF non-settling in set yogurt without thickeners is the current objective. This study attempted to modify IDF with alkaline hydrogen peroxide (AHP) and combine it with a high-pressure homogenization (HPH) process to resolve the settling of IDF in set yogurt. The results showed that AHP-treated IDF (IDF-AHP) altered the structure of IDF, enhanced hydration properties, and had no hydrogen peroxide residue. Set yogurt incorporated with 1, 3, and 5% (w/w) IDF-AHP underwent a HPH process, resulting in non-settling IDF-AHP. The water retention, firmness, and cohesion of yogurt were improved, and the storage modulus (G′) increased during 28-day refrigeration. and the casein gel properties were improved. These results show that combining AHP with HPH treatment prevented the settling of IDF in yogurt and improved its texture. Further studies revealed that AHP and HPH were necessary to prevent IDF from settling in yogurt. This study confirms the applicability of the method and provides new ideas for the commercial production of IDF yogurt.