This invention relates with the development of process technology for soy butter from sprouted soybeans, which may be used as a high protein, cholesterol free spread/butter. The process has been developed by using sprouted soybeans as the start material for the production of soy butter. The first step is moisturizing whole soybeans for 1- 4 h with an amount of water at room temperature (20-35 °C) sufficient to increase the moisture content to around 50-60%, sprouting the beans for 40-72h at 20-35 °C at 80-95 % RH. The sprouted beans are then blanched for 5-20min, roasted at a temperature of I00-160°C for 60-120 min to volatilize the water in the said sprouted beans to produce a roasted soybean product. powdering the roasted soybean product to a very small particle size such that about 95% of the solids present in the said powdered product passes a 200 micron sieve followed by addition of 30-37% oil, 0.5-1% salt and 5-10% sugar. The soybean oil mixture is manually homogenized to get a smooth paste which can be used as a vegetable butter or spread.