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Fatliquoring is an important step in making leather. It endows strength and softness to leather by lubricating its fibers. A certain amount of fungicide is also offered during the post tanning operation, to protect the leather from future fungus infection. The aim of this work is to develop a novel fatliquor, which has both lubricating and antifungal activity. Sulfated blended fatliquors were developed by blending 80:20 proportions of castor and rice bran oil respectively and then followed by reaction with Sulphuric acid at 28±2oC. The novel fatliquor was then characterized for particle size which was similar to a control (sulfated castor and sulfated rice bran oil) fatliquor. Antifungal performance of the novel fatliquor was confirmed by agar well-diffusion process against selected fungus species such as Aspergillus niger, Aspergillus flavus and Aspergillus fumigatus. The resultant leathers were evaluated for physical strength, such as tear strength, tensile strength and lastometer test and the results were found to be similar to control leather. Our study provides additional insights for using such novel fatliquors for both antifungal and lubrication properties.