The effect of 0.2%, 0.4%, and 0.8% cold-water soluble tamarind seed gum on batter density, viscosity, and volume of gluten-free layer cakes made with rice flour was evaluated herein. It was observed that the addition of 0.4% tamarind seed gum gave better cake batter volume and was similar to cakes made with wheat flour. Texture profile analysis, color, proximate composition, water activity, total phenolics content, shelf life, and a sensory evaluation of a gluten-free cake with 0.4% tamarind seed gum were compared to a cake made with wheat flour and rice flour. Gluten-free cakes made with 0.4% tamarind seed gum had higher dietary fiber, sensory scores (appearance, texture, and overall acceptability), and longer shelf life than that of the control. Incorporation of 0.4% tamarind seed gum is recommended for gluten-free baked products as it results in more desirable sensory scores and a longer shelf life.