Background:Milk is the major source of protein and saturated fats in the diet after infancy. In the present study, the effects of different fat and protein quantity as well as fat quality in milk and dairy products on nutrient intake and growth in young children were determined.Methods:Thirty‐eight healthy children were randomly assigned to one of four feeding groups at 12 months of age: 1) Low‐fat milk (1.0 g fat/dl, 3.3 g protein/dl); 2) standard‐fat milk (3.5 g fat/dl, 3.3 g protein/dl); 3) partially vegetable fat and protein‐reduced milk (3.5 g fat/dl, 50% vegetable; 2.2 g protein/dl); and 4) full‐vegetable‐fat milk (3.5 g fat/dl, 100% vegetable; 3.0 g protein/dl). Nutrient intake and growth were measured at 12, 15, and 18 months.Results:The protein intake was significantly reduced with the protein‐reduced milks. The intake of saturated fat was significantly lower with low‐fat milk (11% of energy) or milks containing vegetable fat (13%) than in standard‐fat milk (19.6%). However, the total fat intake was below 30% of energy in low‐fat milk, whereas the total fat intake remained more than 30% in the other groups. Energy intake and growth were similar in all groups.Conclusions:A modified milk with reduced protein content for young children results in protein intakes closer to recommendations. A modified milk with either 50% or 100% vegetable fat and dairy products with low milk fat and high vegetable fat content results in intakes of total and saturated fats closer to international recommendations, compared with standard or low‐fat milk and dairy products.