The aim of this work was to investigate the physical, chemical and functional properties of yoghurt powder prepared by air drying of low fat yoghurt so that it can be used as a conclusive dairy ingredient for value addition and nutrition. For that fresh yogurt was air dried in electric tray dehydrator in 3-5mm at 55-60 °C temperature at air velocity 1.5m/s. Evaluation of moisture value, fat value and ash value was done to study the proximity of yoghurt powder. Tests such as pH, titratable acidity, vitamin C and DPPH were applied to study the chemical properties of yoghurt powder. Study of the bulk properties was done so as to reduce the storage and transportation volume of product. Carr's compressibility index and Hausner ratio were applied to study the flow ability. Wettability, dispersibility, water absorption capacity, solubility, free fat, and sedimentation were conducted for finding the functional properties of yoghurt powder.