Management of agro-industrial waste is an important area of study for researchers with multifarious objectives. Conversion of such wastes into useful food products has emerged as a bountiful industry e.g. mango seed kernel. It contains appreciable quantities of edible oil thus holds various food applications due to presence of higher amount of oleic and stearic acid. In the present research, the lipid fraction from mango kernel were extracted and explored for their potential to replace (varying from 5 to 25%) normal shortenings in cereal baked products. In the first phase, lipid fraction was characterized for various physical and chemical traits. Later, the products were evaluated for their textural and color profile along with physical and chemical characteristics. Lastly, trained taste panel was hired to assess the suitability of product for commercialization. The results were quite conclusive that the lipid fraction melts at normal temperature (26.2°C) thus can be used to replace normal biscuits shortening. The results further indicated that addition of mango kernel lipid fraction influenced physical characters of cookies significantly, while chemical parameters remained insignificant. However, peroxide and thiobarbituric acid values decreased showing the improved oxidative stability and reduced free radical production. The sensory panelists were of the view that cookies containing 15 & 20% mango kernel lipid fraction are suitable for human consumption. In the nutshell, extraction of mango kernel lipid fraction and its utilization in baked products can results in saving millions of foreign exchange reserves for Pakistan thus contributing food security in edible oil sector.