This study was designed to develop microencapsulated Korean mistletoe extract, to determine the stability in vitro and to examine its application in milk. Coating materials used were polyglycerol monostearate (PGMS) and medium-chain triacylglyderol (MCT). The highest efficiency of microencapsulation was 78.3% with 15:1:40 (w/w/v) as PGMS : mistletoe extract : distilled water and 66.1% with 15:1 (w/w) as MCT : mistletoe extract. The size of microcapsule was about 30.0 and 19.5 ??m with PGMS and MCT, respectively. When microcapsules of mistletoe extract were incubated in simulated gastric fluid at pH 2 for 60 min, 14.8 and 17.2% of lectin was released from capsules which were coated with PGMS and MCT, respectively. Comparatively, 83.2 and 87.3% of lectin was released in simulated intestinal fluid (pH 8) after 60 min incubation of capsules coated with PGMS and MCT, respectively. The subsequent study determined the changes of physicochemical and sensory characteristics of milk with fortification of the mistletoe extract microcapsules during 12 day storage. TBA value was significantly lower in microcapsule-added groups than in the uncapsulated mistletoe extract-added group during the storage. When 100 ppm microencapsulated mistletoe extract was added, the L-, a- and b- values and viscosity were not significantly different from those of the control. In addition, the release of lectin from mistletoe extract over 12 days was 8.3 and 9.5 mg/100 ml in milk containing microcapsules made by PGMS and MCT, respectively. All sensory attributes showed a significant difference in uncapsulated mistletoe extract-added milk compared with other groups. The present study indicated that microcapsules of Korean mistletoe extract could be applied to milk and microcapsules coated with PGMS were effectively released in a simulated intestinal environment.