Sweet biscuits were prepared incorporating defatted soy flour (DSF) at various levels viz., 0, 5, 10, 15, 20 and 25% and liquid by-products viz., chhana whey and skim milk (SM) at 0,25,50,75 and 100% level. Addition of various proportions of DSF and dairy by-products in the formulation revealed that sensory scores of appearance of biscuits became significantly better at 25, 50 and 75% whey levels over control up to 10% DSF level whereas addition of skim milk did not improve the sensory scores for appearance of soy-fortified biscuits at all. With the increasing level of DSF (from 5 to 25%) and whey (from 25 to 100%) in the formulation, sensory scores for texture decreased. Texture of biscuits was not adversely affected up 15% DSF level and 50% skim milk incorporation. Over 75% whey level flavour scores for biscuits reduced sharply. At 0, 25, 50, 75 and 100% whey levels, overall acceptability scores for biscuits showed no significant differences between soy flour levels of 0, 5, 10, and 15%. Acceptable quality biscuits can be formulated by incorporating 15% DSF and 75% whey and 50% skim milk separately without affecting the quality of biscuits adversely.