The objective of this project is to derive value from oat hulls for use as food ingredients using fermentation and the tempeh fungus Rhizopus oligosporous. During oat milling, about 30% hulls are produced. The hulls are of low value. Small amounts are used as feed or for combustion or are simply discarded. One of the downsides to consuming oat hulls is its abrasiveness because of their high silica content. One of the objectives of this project was to first reduce the content of silica, and we were able to reduce it successfully from 6% to less than 1% using mild chemical and enzymatic treatments. Silica content was confirmed by means of ICP-MS and colorimetric silica quantification assay. The FDA-recommended daily food intake limit for silica is less than 2% by weight or 10–30 g. The results observed in this project are therefore very promising, especially the fact that fermentation with Rhizopus oligosporous itself reduced silica conent to 2%. Solid-state fermentation (SSF) was also conducted at a small scale (500 g) in static and agitated systems and has indicated that the tempeh fungus is able to colonize the oat hulls and texturize them. Prototype testing of the fermented and texturized oat hulls in food products is in progress.