Recently, consumer demand has increased for healthy snacks. Snack crackers are popular as healthy snacks and there is a high potential to enhance the nutritional value by incorporating natural ingredients. In the present study, the dietary fiber content of the snack crackers was improved by incorporating defatted coconut flour. Chemical and functional properties of defatted coconut flour and all-purpose wheat flour were studied. Snack crackers were prepared by incorporating defatted coconut flour into wheat flour at 10, 20, 30 and 40 % (w/w) levels. Sensory evaluation was conducted by using a 5-point hedonic scale with 31 panelists based on color, crispiness, texture, taste and overall acceptance. Physico-chemical characteristics and shelf life studies were carried out after packing in triple laminated aluminum foil and stored under ambient conditions. Defatted coconut flour was characterized with significantly higher crude fiber (17.69%), protein (22.10%) and mineral content (6.17%) than all-purpose wheat flour. The bulk density, water and oil holding capacities of defatted coconut flour were significantly higher than all-purpose wheat flour (p<0.05). All prepared snack crackers were contained significantly high (p<0.05) content of protein, mineral and crude fiber compared to control (100% wheat flour). The keeping quality was decreased with increasing level of defatted coconut flour. Collectively, the results revealed that up to 20% (w/w) defatted coconut flour can be incorporated in the formulation of healthy snack crackers without compromising physicochemical and sensory attributes.