The objective of this study was to optimise the incorporation of the vitamin E-enriched palm fat, oat and xanthan gum in gluten-based vegetarian nugget formulation. The effects of these ingredients on the texture, oil, and vitamin E content of the fried nugget formulations were analysed. The formulation was optimised using Response Surface Method (RSM). The vitamin E and oil content in fried nuggets were dependent on the amount of palm fat used in the formulation. Less xanthan gum, and more oat and palm fat resulted in higher oil content in the fried nuggets. Palm fat and xanthan gum significantly influenced the texture of the nuggets. The firmness increased as more oat was added. The optimum combination of these ingredients is 6.4% palm fat, 6.8% xanthan gum and 10% oat. These findings provide a basis in formulating gluten-based nuggets with vitamin E-enriched palm fat. Other plant proteins such as soyabased protein may be selected in future research.