Phenolic compounds, while widely recognized for their biological potential, when added into food matrixes may interact with food constituents. One example of this is the interaction between phenolic compounds and proteins, that may result in the formation of complexes and alter the bioavailability of both phenolic compounds and the nutrient availability. Moreover, when adding compounds to improve the functionality of a food matrix, these interactions may compromise the perceived benefits of the additions. Nanoencapsulation has been considered one of the means to circumvent these interactions, as they may function as a physical barrier between the phenolic compounds and the matrix (preventing not only the loss of bioactivity, but eventual sensorial alterations of the foods), protect phenolic compounds through the gastrointestinal tract, and may enhance phenolic absorption through cellular endocytosis. However, despite these advantages the food industry is still limited in its nanotechnological solutions, as special care must be taken to use food-grade encapsulants which will not pose any deleterious effect towards human health. Therefore, this review aims to provide an encompassing view of the existing advantages and limitations of nanotechnology, associated with the inclusion of phenolic compounds in dairy beverages.