The effects of acid hydrolysis on physicochemical and rheological properties of sago starch were investigated. Sago starch was hydrolyzed in hydrochloric acid at 50 °C for 6, 12, 18, and 24 h. The molecular weight distribution, physicochemical, thermal, and rheological properties of acid-hydrolyzed sago starch (AHS) were determined. After 24 h of hydrolysis, molecular weight of amylopectin and amylose were decreased to 3.57 × 10⁵ and 6.5 × 10⁴ g/mol, respectively. Differential scanning calorimetry studies showed that the gelatinization temperature and enthalpy of AHS increased with increasing degree of hydrolysis. Hydrolyzed sago starch containing low molecular weight fractions exhibited cold water solubility up to 100%. Setting temperature of AHS decreased with increasing hydrolysis time but amylose content and gel strength increased in the first 12 h of acid hydrolysis but decreased with extended hydrolysis time. Hydrolyzed sago starch in concentrations lower than 8 g starch per 100 g water was cold water soluble and could be used to modify properties of starch for specific applications such as yogurt and concentrated milk processing.