The development of functional foods using locally available plant resources has gained increasing importance due to their potential health benefits. The present study aimed to formulate and evaluate masala biscuits incorporated with guava leaves powder and to assess their sensory acceptability and nutrient composition. Fresh guava leaves were collected, shade dried, powdered, and incorporated into masala biscuits at three different levels (5 g, 6 g, and 7 g). Sensory evaluation was conducted using a five-point hedonic scale by a trained panel. Nutritional analysis was carried out to determine macro- and micronutrient content. Results revealed that biscuits incorporated with 5 g guava leaves powder obtained the highest overall acceptability score (mean = 3.3). Nutritional analysis indicated increased fiber, vitamin C, and mineral content with higher levels of incorporation. The study concludes that guava leaves powder can be effectively utilized in bakery products to enhance nutritional value while maintaining acceptable sensory qualities.