Small granule potato starch (SGPS) produced by “Wielkopolskie Przedsiębiorstwo Przemysłu Ziemniaczanego” during potato starch production season 1999 was investigated to evaluate its physicochemical properties, structure and usability. SPGS was used as a raw material for different modification processes typically applied in the Polish starch industry to obtain both food and non-food products. The obtained preparations were compared with industrial products: food grade modified starches E 1403, E 1404, E 1412, E 1414 and E 1422, as well as two types of preparations for paper industry – oxidised starch for wet end application and corrugated board adhesive. The experimental and reference starch samples were examined by chemical analysis, rheological methods, scanning electron microscopy and X-ray diffractometry. Textural parameters of deserts prepared by means of food grade modified starches as well as some specific functional properties of industrial preparations were investigated. It was found that SPGS like standard potato starch contained quite small amounts of inorganic impurities as well as crude fibre, revealed similar rheological properties but relatively low crystallinity. SGPS due to its unique physicochemical properties could be recommend as a raw material for the production of corrugated board adhesive. Reactivity of SGPS towards sodium hypochlorite was found lower as compare to standard one. On the contrary susceptibility of SGPS to crosslinking with sodium trimetaphosphate seemed to be higher than of standard starch. The texture of food grade modified starches much differed from standard counterparts, which make possible to extent the assortment of these type products.