Spray drying microencapsulation of Lippia sidoides essential oil was investigated. Maltodextrin DE10 and gum arabic at different proportions (4:1, 3:2, 2:3, 0:1 m/m) was used as a carrier. The content of essential oil related to the carrier was 20 and 25% in weight and the emulsions were atomized from 30% up to 60% (m/m) of total solid concentration. Spray dryer inlet temperatures varied from 140 to 160°C and the best thermal efficiency and powder recovery were found at 160°C. Product properties and process performance were assessed on the basis of microscopic features of the powder (shape and size of microparticles), moisture content, and powder recovery. Encapsulation efficiency was estimated through determination of the content of essential oil in the microcapsules. The best encapsulation efficiency was related to experimental parameters as follows: solid content of the encapsulating composition of 50% (m/m), maltodextrin:gum arabic ratio of 0:1 (m/m) and carrier:essential oil ratio of 4:1 (m/m). Antifungal activities of microparticles were evaluated, evidencing their potential as important antifungal agents. The positive findings in this study encourage further research and provide perspectives for the development of phytotherapeutic products from essential oil of Lippia sidoides.