Many phytochemicals suffer from poor water dispersity and storage stability, which restrict their application within aqueous-based commercial products. β-Cyclodextrin (β-CD) is a water-dispersible molecule with a hydrophobic core that can encapsulate and protect non-polar substances. The functional attributes of β-CD can be further enhanced by chemical modification. In this study, a simple and effective dry-heating process was applied to fabricate succinic acid (SA)-modified β-CD (SACD) through esterification. SACD showed better encapsulation property than non-modified β-CD to guest molecules such as methyl orange (up to 1.41-folds of β-CD) and curcumin (with an encapsulation efficiency of up to 10 mg/g). Meanwhile, higher water solubility (up to 469.30 g per 100 g of H 2 O) was achieved for SACD, indicating that a high dose of SACD could be applied in an aqueous food matrix. Such a simple strategy exhibiting low cytotoxicity shows great potential incorporating bioactive compounds into functional foods.