The phenolic compounds present in the cinnamon extract are responsible for its beneficial effect on health. However, these compounds can undergo degradation reactions and have undesirable sensorial characteristics, which makes it difficult to apply and consume a large quantity of this extract. Thus, the present work evaluated cinnamon extract rich in proanthocyanidins in liquid, spray-dried and lyophilized forms for content of phenolic compounds, antioxidant and antimicrobial capacity, as well as inhibition of α-amylase and α-glycosidase enzymes. In addition, it was proposed to encapsulate the extract by complex coacervation using polymeric pairs formed between gelatin and five different polysaccharides (gum arabic, pectin, cashew gum, carboxymethylcellulose, and κ-carrageenan), as well as characterize the encapsulated extract particles. Drying of the extract caused losses in the initial content of the phenolic compounds. The dry extracts, especially the atomized sample, presented high antioxidant capacity and high potential to inhibit the digestive enzymes, but they lost the antimicrobial capacity in relation to the liquid extract. The microparticles of the encapsulated extract had high efficiency and yield for encapsulation, varied sizes, and irregular shapes. Infrared spectra demonstrated the interaction between protein and polysaccharides in the formation of encapsulated extract particles. The results indicate that the complex coacervation and the materials used have the potential to encapsulate the cinnamon extract, which can contribute to protect its bioactive compounds, their beneficial properties, and mask their undesirable sensorial characteristics.