Pregelatinized starches are physically modified starches with ability to absorb water and increase viscosity at ambient temperature. The main purpose of this study was to determine how different concentrations of acetic acid (0, 500, 1000, 10,000 mg/kg) can affect functional properties of pregelatinized wheat and corn starches (PGWS and PGCS, respectively) produced by a twin drum drier. With increasing acetic acid following changes occurred for both samples; cold water solubility (at 25 °C) increased, water absorption and apparent cold water viscosity (at 25 °C) reduced, the smooth surface of the starch particles converted to an uneven surface as confirmed by scanning electron microscopy, cohesiveness, consistency and turbidity of the starch gels reduced while their syneresis increased. It was found that in presence of acetic acid, PGWS resulted in higher water absorption and apparent cold water viscosity and produced more cohesive and turbid gels with less syneresis compared to PGCS.