Milk protein concentrate powder with 85% protein (MPC85) was jet‐milled to give 2 particle size distributions (that is, JM‐Coarse and JM‐Fine) or freeze‐dried (FD), in order to improve the functional properties of MPC85 for use in high‐protein nutrition (HPN) bars. Volume‐weighted mean diameter decreased from 86 μm to 49, 22, and 8 μm in FD, JM‐Coarse, and JM‐Fine, respectively (P < 0.05). The MPC85 powders modified by jet‐milling and freeze‐drying were significantly denser than the control MPC85 (P < 0.05). Volume of occluded air in the modified powders decreased (P < 0.05) by an order of magnitude, yet only FD possessed a lower volume of interstitial air (P < 0.05). Particle size reduction and freeze‐drying MPC85 decreased its water holding capacity and improved its dispersibility by at least 20%. Contact angle measurements showed that these modifications increased initial hydrophobicity and did not improve wettability. HPN bars made from JM‐Fine or FD were firmer by 40 or 17 N, respectively, than the control on day 0 (P < 0.05). HPN bar maximum compressive force increased by 38%, 33%, and 242% after 42 d at 32 °C when formulated with JM‐Fine, FD, or control MPC85, respectively. HPN bars prepared with JM‐Fine were less crumbly than those formulated with control or FD MPC85. Physically altering the particle structure of MPC85 improved its ability to plasticize within HPN bars and this improved their cohesiveness and textural stability.