Lingzhi mushroom (Ganoderma lucidum) is known as a medicinal mushroom that can be utilized in various functional foods available in the market, including powders, dietary supplements, and tea. However, its use is limited due to factors such as bitterness, flavour, and astringency. The objective of this study is to characterize and quantify the sensory profile of Lingzhi mushroom samples (fresh, dried and Lingzhi extracts) using quantitative descriptive analysis and investigate the physicochemical and sensory properties of encapsulated Lingzhi extracts using different ratios of wall material (maltodextrin, gum Arabic and modified starch from rice flour). The optimal ratio for encapsulation involved 32.75% maltodextrin, 42.25% gum Arabic, and 25% modified starch w/w. Three parallel experiments were performed under practical conditions, resulting in average encapsulation efficiencies of 88.39±0.09% for flavonoids 89.53±0.06% for polysaccharides and 0.31± 0.01 of water activity. The sensory descriptive analysis indicated the following ratings: brown sugar aroma (4.36±0.17), earthy aroma (22.04±0.12), nutty aroma (2.00±0.01), fresh mushroom aroma (11.18±0.19), dried Lingzhi aroma (3.08±0.13), black tea aroma (4.50±0.19), salty taste (1.00±0.01), earthy flavour (23.14±0.22) and Mushroomy (after taste) (2.06±0.09), respectively. The flavour identified of Lingzhi extracts and encapsulated by gas chromatography electronic nose (GC-E-Nose). The result showed ten flavour compounds (Acetaldehyde, Methanethiol, Propanal, propane-2-one, Methyl acetate, 2-methyl propanal, Ethyl Acetate, Heptane, 1-Butanamine, 2-methyl butanal, Thiophene). Optimizing the encapsulation conditions has a significant impact on reducing off-flavours and bitterness. Comparing the flavour profiles of Lingzhi extracts with encapsulated Lingzhi extracts using gas chromatography electronic nose (GC-E-Nose). Encapsulation technology represents a burgeoning field that holds immense potential in ensuring the stability of functional ingredients and facilitating their incorporation into instant beverage products.