Abstract Protein‐energy malnutrition (PEM) is most prevalent and affecting a large number of children in Pakistan. Ready‐to‐use therapeutic food (RUTF) is a tackling strategy to overcome the PEM in Pakistan. The present research was designed to formulate RUTF from different indigenous sources. After conducting some preliminary trials, 14 RUTF formulations were developed by mixing peanut, mung bean, and chickpea alone as well as in various combinations with the addition of sugar, powdered milk, oil, and vitamin‐mineral premix. Freshly prepared RUTF was stored at room temperature (20 ± 5°C) and packed in aluminum foil for 90 days to investigate the microbiological analysis (total plate count and mold count), water activity (Aw), peroxide value, and thiobarbituric acid (TBA) value. All the parameters showed significant (p