Abstract: Cereal grains are ground, slurried in water below the starch gelatinization temperature. Bran, starch granules and protein are removed. .beta.-Glucan is precipitated and dehydrated with alcohol, screened and ground to become a white-colored product with a neutral flavor. The method recovers from 33 to 75 percent of the total natural occurring .beta.-glucan in cereal grains. The .beta.-glucan product is water soluble with purity ranging from 60-90 percent and exhibiting molecular weight of .beta.-glucan ranging from 4.times.10.sup.5 daltons to 2.times.10.sup.6 daltons.