Abstract: Disclosed are simulated, puffed dried fruit pieces and methods for their preparation. The dried fruit pieces are useful for incorporation into ready-to-eat cereals of low water activity, e.g., A.sub.w of 0.1 to 0.3, such as puffed cereals. The dried fruit pieces are characterized by a low density ranging from 0.15 to 0.40 g./cc. due in part to a hollow center and thus do not settle during distribution and storage, and do not sink in milk. The dried fruit pieces are prepared by drying in prescribed manner pieces comprising encapsulated solutions containing hydrophilic colloids set with gelling agents.