The effects of non-interesterified (non-in-es) and chemically interesterified (in-es) cottonseed oil (CO), palm oil (PO) and CO : PO blend (1:1, weight basis) and brewer's spent grain (BSG) on quality of cookies were studied. Incorporation of non-in-es and in-es CO and CO : PO blend improved the nutritional value of the cookies by altering the fatty acid composition. The experimental shortenings had zero-trans fatty acids (TFA) and considerably higher linoleic acid contents than hydrogenated shortening (HS). in-es PO and CO : PO blend samples had lower solid fat content than their non-in-es counterparts and this resulted in higher spread ratios in in-es incorporated cookies. As expected, addition of BSG significantly increased (P < 0.05) the total dietary fiber (TDF) content of cookies. Cookies with modified fatty acid composition and 4.4-fold higher TDF have been produced by using non-in-es and in-es CO and CO : PO with 15% BSG, without significant adverse effects on sensory properties.