Candlenut oil obtained by cold press extraction method was encapsulated in order to preserve the unsaturated fatty acids content from thermal oxidation. The encapsulation of candlenut oil was performed using hydroxypropil mrthylcellulose (HPMC) and maltodextrin as the encapsulating agent due to their filming ability. The solution of wall materials was added with the candlenut oil and emulsified, followed by spray drying process. Three different ratios of oil to wall materials (2:3, 1:1, and 3:2) were evaluated. Based on the peroxide values, encapsulation efficiency, wettability, and moisture content of the microcapsules, the sample with a ratio of 1:1 had better preservation ability towards candlenut oil and therefore used as the main ingredient for body lotion development. Three different concentrations of encapsulated candlenut oil (10%, 6%, and 2%) within the lotion base were observed and analyzed in terms of antioxidant activity by DPPH assay, and overall physical likeness. The result suggested that the wall materials might hinder the reaction between candlenut oil and DPPH radical compounds. The body lotion sample with the lowest content of encapsulated candlenut oil showed the highest antioxidant activity (IC50 = 52.31 ppm). Furthermore, according to the ANOVA test result, there was no significant difference in overall physical likeness between the three samples (p-value ≥ 0.05).