A novel processing method of producing a solid molasses product by a practical chemical processing method is provided. Liquid molasses is heated, mixed with calcium hydroxide at 2 to 25 percents (wt/wt) on a solid basis, dried to less than 15% moisture, and cooled to below 50 degree C. to convert the liquid molasses into the solid molasses in dry form. The solid molasses product is in block, particle or powder form. The oils with free fatty acid levels 20-80% (wt/vt) on a fat basis is added into liquid molasses and processed into molasses-fat block product with more hydrophobic function and water resistance. The process in this invention increases molasses content in the dried solid molasses from such as 42% to 90% and does not need dryer equipment, which increases the product value and reduces the related equipment and energy costs. The solid product in particle or powder form is free-flowing and easy to be handled, processed and delivered.