Abstract: Disclosed is a process for preparing a composition which improves the palatability of dog foods. According to the process, a staged enzyme reaction is employed to first digest either a proteinaceous or an amylaceous substrate. The reaction product of the first stage is emulsified with fat, and the resulting emulsion is reacted with lipase and protease, under conditions effective to provide a material which, when applied to a dog food, significantly enhances its palatability. A preferred farinaceous substrate, to be acted upon by an amylase enzyme for the first stage reaction, is corn. Preferred proteinaceous substrates, to be acted upon by protease enzyme, for the first stage reaction include soy, whey, chicken skins, and cheese solids. The resulting product is produced rapidly, contains large quantities of free fatty acids, and has a high level of palatability.