An attempt has been made to encapsulate dipeptidyl peptidase‐IV (DPP‐IV) inhibitory peptides which were decrypted from hydrolysis of α‐lactalbumin of milk of Gir cows. The effect of salt, pectin, homogenising speed on emulsion stability and encapsulation efficiency was examined. The optimised double emulsion containing 5% DPP‐IV inhibitory peptides had 17.33 ± 0.97 μm mean diameter, −35.43 ± 1.85 mV zeta potential and 93.00 ± 0.90% encapsulation efficiency. The emulsion stored at 5 ± 1°C and 37 ± 1°C exhibited stability of 90 and 20 days respectively. Encapsulated peptides showed ~4 times better DPP‐IV inhibition activity than nonencapsulated after simulated digestion.
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