This study was carried out to determine the possibility of adding nanopowdered chitosan (NPC) into cholesterol-reduced yogurt to improve the functionality of yogurt and the effects of adding NPC on the physicochemical, microbial, and sensory properties of the products during storage. The pH values and mean lactic acid bacteria counts of NPC-added (0.3 to similar to 0.7%, wt/vol) and cholesterol-reduced yogurt ranged from 4.19 to 4.41 and from 4.75 x 10(8) to 9.70 x 10(8) cfu/mL, respectively, when stored at 4 degrees C for 20 d, thereby indicating a possibility of prolonging the shelf life of yogurt. In color, the a* and b* values for cholesterol-reduced yogurt were not significantly influenced by the addition of NPC (0.1 to similar to 0.7%, wt/vol); however, the L* values significantly decreased with the addition of the greatest concentration (0.7%, wt/vol) of NPC at 0-d storage. The sensory test revealed that the astringency scores significantly increased at 0-d storage when the greatest concentration (0.7%, wt/vol) of NPC was added into cholesterol-reduced yogurt. Based on the data obtained from the current study, it is concluded that concentrations (0.3 to similar to 0.5%, vol/vol) of NPC could be used to produce an NPC-added and cholesterol-reduced yogurt without significantly adverse effects on the physicochemical, microbial, and sensory properties.