Oxidative rancidity in anhydrous cow milk fat leads to reduction in its shelf life. Use of synthetic antioxidants is prevalent in dairy industry to prevent the development of rancidity. Keeping in view the increasing demand for natural additives, the present study was carried out to explore the potential of lycopene as a natural antioxidant in anhydrous cow milk fat. Lycopene at five different levels (30, 60, 90, 120 and 150 ppm) and butylated hydroxyl anisole (200 ppm), were incorporated in anhydrous cow milk fat. Potential of lycopene extract to enhance the shelf life of anhydrous cow milk fat was evaluated by measuring Free Fatty Acids, peroxide value, Thiobarbituric Acid value and color value during 12 months of storage at ambient conditions (30°C). Lycopene significantly (p