Abstract: A process for preparing low fat potato chips comprising frying peeled raw potato chips in oil to produce partially fried potato slices having a moisture content of about 10%-25% by weight, transferring the potatoes directly into a zone in which the potatoes are protected against oxidation, removing the oil from the surfaces of the partially fried potatoes, and drying to a moisture content of 1.5%-3.0%. The product is a shelf stable potato chip having no more than 25% oil, by weight. The equipment used comprises means for transporting partially cooked chips from the fryer, means for blasting the chips with streams of saturated steam that maintain the chips in a dynamic bed, and means for drying said fat-reduced, partially cooked chips to a moisture content of 3% or less by weight.