Microencapsulation of fish oil was done by spray drying. Commercially available milk was used to form microsized emulsion. Ginger essential oil (0.25%) was used as source of antioxidant. Fish gelatin and maltodextrin were tested for their ability to serve as wall materials for microcapsules with milk protein. Encapsulation efficiency was improved significantly (P < 0.05) by the addition of fish gelatin/ maltodextrin as wall material. Flow properties of fish oil encapsulate were passable to poor. Fatty acid composition of fish oil encapsulates showed protection of polyunsaturated fatty acids from oxidation. Oxidative stability of the fish oil encapsulates showed better protection against lipid oxidation (1.89 mg malonaldehyde/kg) for fish oil encapsulates prepared with fish gelatin and ginger essential oil and packed in vacuum condition than the control (5.41 mg malonaldehyde/kg) at refrigerated condition. It suggested that in addition to wall material, ginger essential oil also improved the oxidative stability of encapsulates.