Whey is a byproduct with distinct nutritional characteristics and can be used as an ingredient in the production of other foods. Dairy desserts are consumed by people of all ages and typically have high sugar content and low protein values. In this context, the main objective of this study was to develop a chocolate-flavored dairy dessert using whey as substitute for milk, with a reduced contente of added sugars (substituting sucrose with xylitol), following a 3² factorial design. Nine formulations of desserts were produced and characterized in terms of physicochemical parameters, texture and syneresis. The formulations made with whole milk powder (without added whey powder) exhibited the highest values of protein (9.20 to 10.45%), fat (6.0 to 7.5%), firmness (6.87 to 8.30 N), consistency (87.50 to 111.54 N.s) and cohesiveness (5.87 to 8.50 N.s) (p < 0,05), and showed no syneresis. Conversely, the formulations made with whey powder (without added whole milk powder) had the lowest values for protein (5.07 to 5.35%) and fat (0 to 0.5%), as well as lower texture parameters and the highest syneresis percentage (22.89 to 27.29%) (p < 0.05). The presence of xylitol led to an increase in moisture content in formulations made solely with xylitol, with no added sucrose. For comparative purposes, commercial dairy desserts were evaluated concerning syneresis, acidity, and texture. The formulations produced with whey powder, without added whole milk powder, were the closest to the texture characteristics of commercial desserts; however, they exhibited greater syneresis and higher acidity. In general, it can be concluded that it is feasible to produce dairy desserts using whey powder as a dairy base, with reduced added sugars by using xylitol as a substitute for sucrose.