Ground peanuts, previously processed by steaming and drying, were used to substitute for 0 25 50 75 and 100% by weight of shortening in the control formulation. The results showed that where 100% ground peanuts were used as a shortening substitute, there were no significant differences in specific volume, moisture content, sensory acceptance, texture profile and crumb color (L* and chroma value) from the control bread but the sample had darker crust color than that of the control. Proximate analysis indicated that the bread with ground peanuts as fat replacer had higher protein and fat content than those of the control. After 5-day storage at 28oC in a high density polyethylene bags, the peanut bread had higher L* and chroma value in crumb color but no significant difference in texture profile from that of the control, and no mold and total bacteria count were detected in the bread.