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In the present work, carotenoids were isolated (1.2%) from crude palm oil and encapsulated with isabgol fiber (Psyllium husk). The efficiency of encapsulation was 82.23±1.42%. The morphology of the capsules showed rough surface texture with minimal pores. The amorphous natures of the nano-capsules was obvious from X-ray diffraction patterns. DSC studies showed high thermal stability of the nano-capsules between 20–120 °C. In vitro release studies revealed that controlled release from the nano-capsules could be achieved using isabgol fiber as encapsulant. However it was observed that the nano-capsules followed a non-Fickian diffusion pattern. Good DPPH-radical scavenging and metal-chelation activities were observed for encapsulated carotenoids. Shelf-life studies showed that the nano-capsules gradually degraded at 97% relative humidity, as the moisture-induced rancidity was evidently not extensive.