The study was undertaken to develop low calorie functional milk drinks using inulin and sucralose as fat and sugar substitutes, respectively. Cardamom was incorporated as a flavouring ingredient. The milk fat varied from 0.5 to 1.0%, sugar replacement from 0 to 100%, and inulin incorporation from 0 to 8%. The effect on total solids (TS), total soluble solids (TSS), specific gravity, viscosity and sensory scores was studied. Sugar replacement considerably decreased TS, TSS, viscosity and sensory scores. However, increase in inulin significantly improved these parameters. Addition of 4% inulin was found to impart viscosity and sensory properties equivalent to that of control (2% fat). The cardamom flavoured milk drinks were prepared by replacing sugar and adding 4% inulin in milk of 0.5% fat and 8.5% milk solid-not-fat. The calorific value decreased by 43% in the experimental milk drink compared to control.