Purpose: The aim of the present study was to evaluate the antifungal activity, anti-aflatoxigenic capability, and technological functionality of the selected lactic acid bacteria (LAB) isolated from wheat sourdough. Methods: The preselected LAB isolates were screened based on their antifungal activities and acidification capacities. Then, the antifungal compounds were identified using gas chromatography/mass spectrometry in the selected LAB culture filtrate obtained from its preparative thin-layer chromatography. The HPLC-based analysis was also used to investigate the anti-aflatoxigenic potentials of the selected LAB isolate. Finally, controlled sourdough (containing selected LAB isolate as starter culture) was used to produce loaf bread, and properties of the product were evaluated in terms of hardness, phytic acid content, overall acceptability, and surface moldiness. Results: Molecular approaches led to the identification of Pediococcus pentosaceus as the selected LAB isolate. In vitro and in situ antifungal activities of the selected LAB against Aspergillus niger were verified. Antifungal metabolites of the LAB included fatty acid ester, hydroxylated fatty acid ester, an antimicrobial compound, and cyclic dipeptide. Potent anti-aflatoxigenic capabilities of the LAB isolate and cyclic dipeptide (which was identified in the antifungal fraction of the LAB) were also verified. To our best knowledge, the cyclic dipeptide detected in the present study has never been shown before to possess anti-aflatoxigenic effect. Furthermore, the results revealed that controlled sourdough improved the techno-functional properties of the produced loaf wheat bread. Conclusion: Altogether, our findings indicate that the selected P. pentosaceus isolate exhibiting proper characteristics can be used as a bio-preservative and bio-improver in the processing of clean-label breads

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