In the making of yellow layer cake, shortening was replaced with olive oil at levels of 25, 50, 75, and 100%. The hunter values of L and b showed that the crumb colors of the cakes with 50 and 75% olive oil were significantly different from that of the control. Both 50 and 75% olive cakes showed a higher specific gravity of batters, and lower specific volume of cakes, than the control. Cakes with 50 and 75% olive oil were less hard than the control during 3 days’ storage at 22oC. Sensory evaluation showed that their characteristics - cell uniformity, crumb color, taste, softness, and moistness - were not influenced by the replacement of shortening with olive oil. And same as above for overall acceptance.