Resistant starch type III (RS III) derived from enzymatically debranched high amylose rice starch was prepared and used to make butter cake at different levels (0, 5, 10, 15 and 20%) in place of wheat flour. Physico-chemical properties, sensory evaluation, and in vitro starch hydrolysis rate of the developed butter cake were investigated. This study showed that the content of resistant starch in butter cake increased significantly (P<0.05) as the level of substitution with RS III increased from 2.1 to 4.4% of resistant starch content. The butter cake with RS III replacement had a significantly lower in vitro starch hydrolysis rate compared to the control cake (0% RS III). The rates of starch hydrolysis from 0 to 180 min digestion time for 0, 5, 10 15, and 20% RS III in place of wheat flour in butter cakes were 3.70 to 67.65%, 2.97 to 64.86%, 2.86 to 59.99%, 2.79 to 55.96 and 2.78 to 53.04% respectively. The physico-chemical properties of 5 to 10% RS III substituted with wheat flour in the butter cake were not significantly different from the control cake and were moderately accepted by panellists in the sensory evaluation test.