Development of novel snack foods is an important area of research, and different ingredients are being tested to develop and process new formulations. In this study, lupin chips prepared using different formulations (hulled lupin, whole lupin, wheat and corn flours) were cooked using baking and frying, and changes in the sensory and colour parameters, acrylamide contents, fat absorption, peroxide number and p-anisidine values of the final products were studied. Lupin flour significantly changed p-anisidine value of chips. Addition of lupin flour and cooking methods affected the colour, fat absorption and peroxide values. Significant differences in chemical properties of chips made from whole and hulled lupin flours were also observed. Acrylamide was not detected in all the formulations studied. The lupin chips have increased brightness (L*), no acrylamides, reduced peroxide and p-anisidine values and acceptable sensory quality; hence, this ingredient is recommendable for use in snack foods.