In the current environment whereby new sources of proteins are extracted from plant material, it is also important to study the potential use of the resulting side streams. Although a number of studies have been conducted on various polysaccharides extracted from plant raw material, a polysaccharide fraction extracted from lupin bean is yet to be explored, in spite of the emerging interest in this crop as a source of food ingredients. In this work lupin soluble polysaccharide (LuPS) was obtained with a recovery as high as 46 % by extraction at pH 8, 120 °C, for 90 min. This fraction, named LuPS-8, was composed of a mostly linear pectic polysaccharide with a weight average molecular mass of 6608 kg/mol, and containing 71.0 % galactose, with minor amounts of arabinose (16.0 %), glucuronic acid 4.6 %, and galacturonic acid 4.1 %. When added to an acid milk dispersion, LuPS-8 improved its dispersibility, providing storage stability against sedimentation over a wider pH range than a HM-pectin reference, between 3.6–4.4. This research demonstrated the potential for upcycling of a side stream of lupin protein production, by the creation of value-added novel functional polysaccharide.