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Pegaga (Centella asiatica) is a well-known Malaysian herb recognised for its antioxidant, cognitive, and health-promoting properties. However, its incorporation into dairy-based functional products, particularly yogurt ice cream, remains limited due to its naturally bitter taste and strong herbal flavour. Therefore, this project aimed to develop a functional yogurt ice cream enriched with Pegaga extract and evaluate its sensory acceptability. Three formulations containing different concentrations of Pegaga extract were produced and incorporated with complementary ingredients such as honey and coconut flakes to improve flavour and consumer acceptance. The developed products were analysed for pH, total phenolic content, and sensory acceptability. Sensory evaluation was conducted to determine the most preferred formulation in terms of colour, aroma, taste, texture, and overall acceptability. The incorporation of Pegaga extract is expected to enhance the functional and antioxidant value of yogurt ice cream while maintaining desirable sensory characteristics. This innovation promotes the utilisation of locally available Malaysian herbs in value-added functional food products and offers a healthier alternative dessert option for consumers.