Encapsulation has been used widely for improving the stability and bioavailability of various bioactive compounds. Among the nanodelivery systems, solid lipid nanoparticles (SLN) are capable of delivering bioactive compounds with sustained release properties. In this study, β‐carotene loaded SLN (SLN‐βC) was prepared with glycerol monostearate (GMS) and stearic acid (SA) as wall materials; tween 80 (T80) and soy lecithin (SL) as surfactant and co‐surfactant, respectively. To form nano emulsions, high shear homogenization was  used. Further, the formed nano emulsion was freeze dried to get free flowing powder. The particle size of SLN‐βC and freeze dried SLN‐βC was found to be 836.90 and 974.30 nm, respectively. Encapsulation efficiency and loading capacity of freeze dried SLN‐βC was found to be 61.35 ± 1.18% and 12.85% respectively. SLN particles give sustained release of β‐carotene up to 24 hr. Further, in vitro simulated gastro intestinal studies confirmed the effective protection of encapsulated β‐carotene in gastric condition and its release in intestinal condition. Freeze dried SLN‐βC also showed better stability in terms of moisture content, color, rehydration time and powder flow properties during storage for one month. Practical applications β‐carotene is an excellent antioxidant due to its high provitamin A activity. It is also used in various industrial food applications as a natural colorant as it gives good appeal to the product. However, it is hydrophobic and light sensitive. Therefore, encapsulation of β‐carotene can improve its stability by retaining its functional properties. This work confirms encapsulation using solid lipid matrix as a proficient method for retaining the functional properties of β‐carotene.