The invention is directed to a method for preparing sulfated psyllium derivatives for use to reduce the risk of chronic human diseases. The sulfation of psyllium was carried out with sulfur, trioxide, pyridine, dimethylformamide and chlorosulfonic acid in pyridine. Six total sulfated psyllium derivatives named SP1, SP2, SP3, SPR1, SPR2, and SPR3 were prepared and evaluated for their morphological and rheological properties, and bile acid-binding abilities. The invention offers a novel approach to obtaining sulfated psyllium derivatives for use in functional foods or supplemental and pharmaceutical products to increase health benefits.