Coconut flour production is one of the technologies available to fully diversify the industry and in meeting the challenges faced by the developments in the world trade. The technological advances made in the field of aqueous processing has made possible the commercialization of the technology. Being obtained from the by-product of coco milk processing, coconut flour will provide value-added income instead of just using it as feeds. The project entitled, Production, Marketing and Utilization of Coconut Flour and Other Non-traditional Coconut Food Items, is a joint undertaking by the Philippine Coconut Authority, the Women Inventors Association of the Philippines, Inc. (WIAPI) and the University of the Philippines - College of Food Science and Nutrition. The process developed involved nut preparation, defatting and pulverizing. Shelf-life studies are presently being undertaken. Studies on its composition and properties revealed that it is comparable with other cereal flours in the market in terms of energy content, carbohydrates and fat content. Being a good potential source of dietary fiber (19.3 percent) the physical properties and biological effects of coconut flour were studied. The acidity at near neutrality, bland flavor and off-white colour would facilitate incorporation into various food products such as biscuits, breads, cookies, snack foods and breakfast cereals at levels that will not alter their acceptability. The levels of incorporation range from 5 to 25 percent. From the results of animal experimentation, coconut flour was proven to be a good source of fiber supplements in diets, in increasing fecal bulk and lowering of serum cholesterol. Based on market projections, there is a large potential market to be filled-in in the bakery and snack food industries. At a price range of P 12-20.00 per kilo ($0.46-$0.77), it is very competitive with other cereal. flours in the market.