Starches are important food biopolymers with gelling properties that are well explored by the food industry for texture and physical food characteristic control. Brazil contributes to a large part of the starches produced world wide, but the modified starches used are imported and expensive. The objective of this work was to develop a hydroxypropylated starch from cassava starch, at a lower price and in conditions in accordance with Brazilian reality. Dihydroxypropylstarch (DHPS) was produced with a less expensive and less harmful substituting molecule, chloropropylene glycol. DHPS physical chemistry properties, retrogradation and micro structural characteristics were studied and compared with native corn, cassava starches and a commercial hydroxypropylated (HPS) cassava starch, with an extensive use in the food industry. DHPS showed the highest values for swelling power and viscosity, low retrogradation and higher freezing–thawing stability, compared with HPS, cassava and native corn starches. The microstructure of DHPS remained unmodified when compared with commercial HPS. Retrogradation and physical chemistry properties are superior to DHPS, which would indicate its use in industrial food production.