This research aimed to develop a nano-encapsulated free-flow powder of 1-octacosanol for functional food application. We had prepared stable green nano-emulsion oil in water by Dyno Mill and spray dryer for free flow powder by using different polymers (Hydroxypropyl methylcellulose, polyvinylpyrrolidone, octenyl succinate starches) as hydrophilic polymers in different ratios for enhancing the solubility. Zeta potential, X-ray diffraction (XRD), fourier transform infrared spectroscopy (FTIR), encapsulation efficiency, particle size distribution, surface morphology, differential scanning calorimetry spectroscopy and in-vitro dissolution research were used to analyze 1-octacosanol. The optimized nano-emulsion preparation F15 consists of an average particle size 720.9 nm, zeta potential -24.5 mV shows stable nano-emulsion oil in water type, and encapsulation efficiency was found to be 96.76%, FTIR studies did not show any evidence of interaction between the herbal extract and the polymers. XRD shows the conversion of crystalline to amorphous nature of powder. In differential scanning calorimetry (DSC), spectroscopy studies found three major peaks in standard herbal extract peaks is 60.21, 67.16, 81.27°C and nano-encapsulated spray dried powder peaks are 58.18, 66.44, 79.25°C with minor moisture absorbed by the polymer in formulation. This evaluation shows significant improvement between normal herbal extract of 1-octacosanol and encapsulated spray-dried powder of 1-octacosanol for functional food application successfully improving the water solubility without changing a structural and chemical properties of the 1-octacosanol crystal.