In the western world intake of dietary fibre is low and fat consumption is high. This leads to many diet related diseases, such as, type 2 diabetes, colorectal cancer and cardiovascular disease. Fibre enrichment and fat replacement are effective ways in developing a health-promoting diet. β-glucan, a soluble dietary fibre present in cereal grains, has many health benefits, which include reduction in blood cholesterol and, improving insulin response. Due to its viscosity enhancing and water binding properties, β-glucan is considered as a potential fat replacer. In this thesis β-glucan from oat and barley were studied as functional ingredients in bakery systems using cake as a model to deliver health benefits.