The research work was carried out to evaluate various physical characteristics of flaxseed for formulation and development of functional cookies. Due to health promoting properties and excellent nutrient profile of flaxseed, it has been becoming a popular functional food product for incorporation in human diet. Ground flaxseed is being used extensively for the development of functional foods. The components of flaxseed, identified to exhibit the health benefits are fiber, lignans and linolenic acid (Omega-3 fatty acid). Moreover, flaxseed is a good source of high quality protein, soluble fibers and phenolic compounds. The physical properties of flaxseed determined as a function of moisture content varied significantly with increased in moisture content. Further, research was carried out for incorporation and formulation of the ground flaxseed as supplemented flour in development of functional cookies. The sensory analysis regarding the overall acceptability of cookies prepared from composite flours results that supplementation significantly affected the overall acceptability of the functional cookies.