In order to improve the flavor and quality of goat milk yogurt and enhance its functional value, Lactobacillus plantarum JS5 and JS19, isolated from Jiangshui, a traditional Chinese fermented vegetable food, were used for goat milk fermentation. The physicochemical properties, textural characteristics, and functional properties of goat milk yogurt were evaluated. The results showed that mixed-culture fermentations with each isolate and a commercial starter culture improved the water-holding capacity and apparent viscosity of goat milk yogurt, reduced its hardness and gumminess and promoted the release of acetaldehyde and diacetyl. The rate of cholesterol degradation (up to 36.62%) in goat milk yogurt containing Lactobacillus plantarum JS5 was significantly higher than that in the control group (P < 0.05). Goat milk yogurt containing Lactobacillus plantarum JS19 showed stronger antioxidant capacity in vitro, which could scavenge 70.58% of 1,1-diphenyl-2-picrylhydrazyl (DPPH) radical and had a ferric ion reducing antioxidant power (FRAP) value of 32.03 μmol ferrous sulfate equivalent/L on the first day of storage. Therefore, both strains are suitable for goat milk fermentation.