SummaryJaggery, a natural unrefined sweetener rich in phytonutrients, could be used as a healthier substitute to develop functional foods. The present study intended to utilise liquid jaggery in place of refined sugars to develop a functional fruit snack bar. Five different formulations were prepared by varying levels (0%–100%) of liquid jaggery in conventional fruit bar containing pumpkin pulp as base material. The addition of jaggery significantly enhanced bioactive constituents and minerals, which were also confirmed by ICAP analysis. Based on sensory characteristics, pumpkin bars prepared by replacing sugar with 50% liquid jaggery were selected for shelf study evaluation. Bars were packed in laminated foil and butter paper and stored under room (25 ± 1 °C) and refrigerated (4 ± 1 °C) conditions. Irrespective of storage temperature and packaging materials, significant variation was noticed in moisture content and textural characteristics of stored fruit bars. Total and reducing sugars and titratable acidity increased while bioactive constituents and colour values remarkably decreased with progression of storage period. Except moisture, the rate of loss of quality attributes was rapid at room temperature. Stored jaggery‐based pumpkin bars packed in both packagings showed satisfactory microbial and organoleptic quality for 6 months.