The therapeutic properties of clove oil is known for centuries, however, the pungent nature, chemical instability and low water solubility impose limitations in harnessing its therapeutic potential. Hence, nanoencapsulation of clove oil was performed to overcome the above constraints and control its in-vitro release. The stability of nanoemulsion depends on various factors where the surfactant and its hydrophile/lipofile balance (HLB) play a key role. The non-ionic surfactants Tween 20, 40 and 80 with HLB of 16.7, 15.6 and 15, respectively, were used to study the stability of clove oil nanoemulsion (CON). The creaming index of CON prepared with Tween 20, 40 and 80 was 22.75 and 17.5 and 1.5%, respectively, after 8 days of storage at room temperature. Tween 20 and 40 produced particles > 300 nm while Tween 80 resulted in particles of size ∼150 nm. Transmission electron microscopic image of spray dried CON prepared with Tween 80 showed particle size in the range 150-190 nm after one month of storage at room temperature. The in vitro release studies showed 76% and 42% cumulative release of CON and native clove oil (NC), respectively at pH 7.4. The cellular toxicity of CON was significantly reduced by four fold compared to NC at a concentration of 60 µg/mL when tested on Caco2 cells. Similarly, haemolytic activity on red blood cells revealed less than 10% haemolysis signifying the compatibility of CON for its nutraceutical applications. In addition, CON also exhibited higher in-vitro antioxidant compared to NC as shown by DPPH and ABTS radical scavenging activity. Collectively, we have developed a unique method for NC nanoencapsulation using cost effective polysaccharide (maltodextrin) and surfactant for stabilizing the nanoemulsion for increased bioactivity.