Natural polymer based encapsulation of essential oil (EO) is one of the emerging and challenging area of research in perfumery, cosmetics, flavoring agents, preservatives, therapeutics, etc. The knowledge of formulation techniques and physico-chemical properties of the polymers are the basic requirements for the successful encapsulations of essential oils (EOs). This current review article is focused on a comparative account of various formulation techniques based on their applicability. For the first time, it also reviews various physico-chemical techniques used in the analysis of EO encapsulates to determine their stability, structure, surface morphology, and encapsulation efficiency. Further, the mechanisms involved in the release of EOs from encapsulates, along with various factors affecting their release, have also been discussed.