The effects of lyophilized tamarillo powder (TP) on the physicochemical, antioxidant, sensory, and starch digestibility characteristics of steamed breads were studied. The TP was used to substitute 5–20% of wheat flour to make steamed breads, assigned as T5, T10, T15, and T20, respectively. The results showed that TP is rich in dietary fiber (36.45%). Its extract is rich in bioactive components, including phenolic compounds (28.90 mg GAE/g extract), ascorbic acid (3.25 mg/g extract), total anthocyanins (316.35 μg C3GE/g extract), and total carotenoids (12.68 μg βCE/g extract) and has good antioxidant capacity. As the level of TP increased, the color of steamed breads became darker, redder, and yellower; the texture became harder, and the overall consumption preference decreased. However, their bioactive components content and antioxidant activity increased. The starch hydrolysis percentage of T5 (43.82%), T10 (41.57%), T15 (37.41%), and T20 (35.63%) at 180 min was significantly lower than that of the control (49.80%) (p< 0.05). The in vitro predicted glycemic index (80.02) of T20 was categorized as a medium-GI food when bread was used as the reference. On a nine-point hedonic test, control and T5 had the highest overall preference scores (7.1–7.4). The T20 supplemented with extra 15–20% water improved its volume and specific volume, and the overall preference scores (7.4–7.5) were not significantly different from the control (p> 0.05). Overall, a partial replacement of wheat flour with TP in steamed bread making could be developed as a new type of medium-GI value food containing more bioactive components and effective antioxidant capacity.