Freshly harvested guava fruits (Lucknow-49) packed in 25µ and 50µ of LDPE bags with 3% O2+5% CO2, 6% O2+5% CO2, 9% O2+5% CO2 gas concentration and stored at 5±10C and 10±10C temperature. The shelf life of guava increased up to 42 days by packing in 50μ LDPE bags at 9% O2+5% CO2 gas concentration and 100C temperature. The cost of packaging of guava fruit per kg was estimated Rs. 4.83 with net profit 11.17 Rs/kg. The guava slices (10 mm) immersed in 50, 60 and 700Brix sucrose solutions with sample to solution ratio 1:5 (w/w) at room temperature and 500C for 6 h and 12 h and dried in a single layer in a tray dryer at 60±20C and 2.5 m/s air velocity. Dried guava slices were grinded and sieved by 300 mesh sieves to obtain powder. The 600Brix sucrose solution, 6 h immersion time and 500C process temperature showed best quality of powder. The best quality powder was packed in 50 µ LDPE, HDPE, PP, ALPE pouch with nitrogen gas and in glass bottle and stored at room temperature. The dehydrated guava powder was stored up to 8 months in nitrogen gas filled ALPE pouch. The cost of preparation and packaging per kg of guava powder was estimated to be Rs. 303.12 with net profit of 216.70 Rs/kg.