Iota carrageenan is regarded as a hydrocolloid, and this adaptable polymer is deficient due to its limitations in terms of hygroscopicity and hydrophilicity. The current study addresses each of these factors to enhance stability, and hydrophobicity through the protection of highly reactive primary alcohol and the formation of stable, improved hydrophobic, and conductive gel for the loading of lipophilic drugs. The functionalized polymer is evaluated through the microscopic and SEM image of the compounds which confirmed the confined nature of the functionalized polymer, moreover, the numerical values changes from compound 1 (iota carrageenan) to compound 2(benzoyl liked iota carrageenan)included Log P (Partition coefficient) from ‐0.97 to 0.90, C Log P (calculated Partition coefficient) from ‐2.50 to 0.12 and TPSA (Total polar surface area) from 214.1 to 208.57, strongly suggests the enhanced hydrophobic character of functionalized polymer. The enhancement was further concluded by the loading of the lipophilic drug inside the core of functionalized polymer‐based gel. The enhanced loading of the drug clearly shows the improved hydrophobicity (56 to 86%) of the gel core of the functionalized compounds. In addition, to the experiments, the gelling nature was demonstrated by using the DFT energy calculation and conformational study. In summary, a polymer with enhanced stability, hydrophobicity, conductivity, and capacity to make a more stable, gel with enhanced drug loading capability of water‐insoluble drugs, will be the best way to resolve the less bioavailability of the water‐insoluble drug.This article is protected by copyright. All rights reserved