The potential therapeutic applications of cannabidiol (CBD) extend to various health conditions such as multiple sclerosis, Parkinson's disease, cancer, nausea, insomnia, and anxiety. However, the practical use of CBD for medicinal purposes is hindered by its high lipophilicity, posing challenges in dosage and bioavailability. To address this, sustained release of CBD was assured by encapsulating CBD in biodegradable and biocompatible polymer polycaprolactone (PCL). Ultrasonication and oil in water emulsion was employed and 5, 10, 15, and 30 mg CBD were used for encapsulation into PCL nanoparticles, namely CBD-PCL NPs-1, NPs-2, NPs-3, NPs-4, respectively. The study evaluated morphological and physicochemical characteristics through FE-SEM, STEM, zeta size, HPLC, FT-IR and DSC analyses. The blank NPs-0 and CBD loaded NPs-1-4, exhibited mean particle diameters in between 207.5 nm and 227.7 nm with charges ranging − 23.37 and − 9.40 mV. Release kinetics of CBD-NPs were assessed and found to fit Zero-order kinetic model at pH 1.2 and Higuchi kinetic model at 7.4. The internalization of NPs into fibroblast cells and the impact of CBD on cell proliferation were also communicated. The findings suggest the potential application of innovative NPs as carriers for sustained release of CBD to be used in oral supplement formulations.