A method for making a bean-based oil substitute comprising the steps of (a) homogenizing comminuted cooked beans in an aqueous liquid dispersion to form a homogenate, and (b) mixing an edible oil with said comminuted beans, before or after homogenization of the beans, to form a flowable stable dispersion oil substitute of the comminuted beans dispersed in a mixture of oil and water. The oil substitute is used to replace part of the oil in making dehydrated refried beans.