In order to expand application of starch and tung oil, tung oil anhydride modified potato starch (TOA starch) was prepared in this work. The structural property, degree of substitution, pasting properties, rheological properties and emulsifying ability of the TOA starch were investigated. Fourier-transform infrared spectroscopy analysis proved formation of modified starch, and degree of substitution of TOA starch was 0.021 ± 0.001. Compared with natural potato starch and its gel, TOA starch had lower pasting temperature and breakdown while higher trough viscosity, final viscosity and setback, and its gel had higher recovery capability. In addition, oil-in-water emulsion was prepared using TOA starch. Its particle size and ζ-potential was 551 ± 9.7 nm and -44 ± 0.1 mV, respectively. More importantly, it had similar storage stability with emulsion stabilized by octenyl succinic anhydride modified starch, which was stable stored for 20 d. These result further confirmed feasibility of modifying starch using tung oil anhydride and expanded application of starch and tung oil.