In the present study, a comparative analysis was undertaken on the possibilities of using olive oil in fresh spreadable cheese either emulsified or encapsulated. The changes in titratable acidity, active acidity and total Lactococcus count were recorded continuously throughout the storage period. At the end of the storage period, Lactococcus count in the samples with encapsulated oil were found to be slightly higher (7.7 and 7.8 log CFU.g-1 respectively) in comparison with the control sample (7.5 log CFU.g-1 ). A significantly higher content (P < 0.05) of unsaturated fatty acids (56.88 g per 100 g fatty acids) and a lower peroxide value of extracted fat (0.35 meqO2.kg-1 ) were found in the fresh spreadable cheese samples with 4% (w/w) encapsulated olive oil and extract of dill used as antioxidant in an amount of 0.003% (v/v). The addition of antioxidant (dill extract) further reduced oxidation process and enhanced cheese functionality. The sensory profile of the fresh cheeses, containing encapsulated oil, was better compared to the sensory profile of the products prepared with directly added olive oil (with or without added antioxidant).