Since industrial revolution, scientist started to develop new bread formulations in order to improve bread quality and shelf life. This research investigated the effectiveness of octenyl succinate anhydride (OSA) modified starches, from two sources (wheat and tapioca), as fat replacers in bread formulation. Samples for control were with different levels of shortening (0% and 2%), and for test samples 2% and 4% OSA modified starch and tapioca were used as fat replacers. Tests were performed on dough and baked product (bread). Results showed that samples with 4% OSA modified wheat and tapioca starch can be used as fat replacers in bread production. Dough and bread properties in comparison with controls sample with 2% shortening had better or the same characteristics.