Blends of octenyl succinate starch (OSS) and maltopolymers with different weight-average molecular weight (MW) were evaluated for encapsulation of orange oil via twin-screw extrusion. The objective is to understand encapsulation properties of OSS in low moisture systems. It was found with similar glass transition temperatures (~35 °C) higher MW matrices showed higher moisture content, lower birefringence intensity, greater OSS gelatinization and higher oil payload. Use of pre-gelatinized OSS resulted in greater oil payload (11.4 g/100 g) than that of OSS without pre-gelatinization (9.7 g/100 g). Moreover, birefringence intensity of extruded particles was found valuable as qualitative indicator of OSS gelatinization. It was demonstrated non-Newtonian melt of higher MW maltopolymer enhanced oil encapsulation due to smaller critical capillary number (Cacritical) than that of Newtonian melt of lower Mw maltopolymer. In conclusion, greater OSS gelatinization and smaller Cacritical lead to higher oil payload. The findings provide insights in enhancing encapsulation performance of OSS in melt extrusion encapsulation.